Burundi’s 2026/2027 Finance Law introduces a package of tax incentives for renewable energy, housing and public infrastructure, exempting selected equipment and investments from customs duties, value-added tax (VAT) and income tax.
The measures are contained in several provisions of the Finance Law promulgated by President Évariste Ndayishimiye and are aimed at sectors ranging from renewable energy to construction and government infrastructure projects.
Under Article 222, imports and local purchases of renewable energy equipment and modern cooking equipment that comply with national and international standards are exempt from customs duties and VAT.
The law states that “renewable energy equipment and modern cooking equipment that comply with national and international standards shall be exempt from customs duties and value-added tax on both imported and locally purchased products.”
The exemption is subject to approval by the Ministry of Finance, with beneficiaries required to comply with all applicable tax and administrative obligations.
The Finance Law also introduces a tax incentive for newly constructed rental properties. Under Article 227, rental income earned from newly constructed buildings will be exempt from income tax for two years from the date the property is first rented.
The article states that “rental income from newly constructed buildings shall be exempt from income tax for a period of two years from the date of their first lease.” The exemption does not apply to income generated through subleasing arrangements. Another provision, Article 228, exempts vehicles, machinery and construction equipment imported by government institutions for public infrastructure projects from customs duties and VAT.
According to the law, “vehicles, machinery and equipment imported for government infrastructure projects shall be exempt from customs duties and value-added tax.” The exemption applies only to government institutions implementing public infrastructure projects and does not extend to private commercial activities. The tax incentives form part of a broader package of fiscal measures contained in Burundi’s 2026/2027 Finance Law, which also introduces changes affecting customs administration, taxation and investment.
Governments across East Africa have increasingly used targeted tax incentives to encourage investment in sectors such as renewable energy, housing and infrastructure, although the design and scope of those incentives vary from one country to another.
Burundi’s Finance Law does not estimate the fiscal cost of the exemptions or indicate the amount of investment the measures are expected to generate. The incentives will take effect under the 2026/2027 Finance Law, subject to any implementing regulations issued by the relevant authorities.
