Positive tax collection in Rwanda have confirmed the country’s potential to effectively and optimally mobilise the revenue needed to finance the country’s development goals.

Rwanda Revenue Authority’s latest figures indicate that the taxman collected Rwf1,103 billion in tax revenue during the last fiscal year 2016/2017, surpassing its target by Rwf8.7 billion.

Richard Tusabe, the RRA Commissioner General, said the tax body had targeted to collect Rwf1,094.3 billion.

The revenue body attributed the growth in revenue collections to recent tax reforms, particularly automation, which it said has enhanced efficiency and increased compliancy among taxpayers.

“The introduction of more unified declarations for Pay-As-You-Earn (PAYE) and strong verification mechanisms for value added tax (VAT), among other measures, played a key role in improving the revenue collections across the country,” Tusabe said.

“These measures helped reduce tax leakages, especially in VAT collections, and eased the refund process.”

Advertisement