RRA introduces tax collection reforms

By: Igihe.com Reporter

Rwanda Revenue Authority is introducing new tax collection reforms expected to help the agency to attain its 2011/12 goal with a projection to collect Frw501Bn

The Revenue Authority’s target rose from Frw 476bn for 2010/11 which ended June this year after Rwanda adjusted her financial calendars to those of member states of the East African Community.

“Despite our obligation of collecting taxes, specifically the way we should do our tax collection, should be instrumental so that the introduced reforms can be favorable and the cost of doing business becomes favorable taxed other than being a barrier,” Richard Tushabe Deputy Commissioner General and Commissioner for customs service said.

Tushabe revealed that his institution will introduce electronic tax device which will help to increase tax from VAT tax collection, e-filing & e-payment system which will help declaration and payment without going to RRA offices.

Others include electronic single window which is a system that will be largely used on customs where, an exporter will make declaration process of one’s goods while sitting in the office, electronic cargo tracking and authorized economic operator which will identify an exporter with integrity in the region.

This the commissioner said will help Rwanda continue taking a step towards achieving self-funded budget after having been able to attain 48 per cent of budget support last year.

While responding to the impact of the government’s waiving off taxes on petroleum products, Tushabe said Frw 9Bn a year will be lost compared to Frw 14bn which could have been attained and that only Frw 5bn will be attain using new tax collection reforms.

He further explained that the new tax collection reforms are expected to also recover a lot of tax invasions that had been evident in VAT tax collection.
The development comes in a time RRA is preparing to celebrate tax payer’s day due August 13, 2011.

Several tax payer’s days organized in different parts of the country since July 15, 2011 when they celebrated tax payer’s day in Gatsibo District, Eastern Province the rest will follow.