It’s just one week since the International Trade Fair (EXPO) 2011 kicked off varied commodity exhibition, some business participants have expressed dissatisfaction, especially on tax rates.
Exhibitioners who exclusively talked to igihe.com noted that major areas need extensive attention to boost business environment in Rwanda. These include; business communication, customer care services, bureaucracy, friendly customs union staff and high tax fares.
Shelter Msangi of pina Fashon Company from Dar es Salaam, Tanzania noted: “The tax charges here are extremely high as compared to other countries in the region yet even the purchasing power is low.
“I don’t think I can make profitable business in Rwanda with such exorbitant taxes. Yet they are telling us that we are in EAC and instead things are worsening as time goes on.”
Dr. Lucy Samky, Managing Director, Rafiki Herbalist from Arusha-Tanzania said: “If revenue charges are cut down like in other regional countries, then the business environment in Rwanda is the best and this can entice me to start business in Rwanda.
“They should reduce tax charges and train lower cadres on issues of EAC partnership in order to increase business investments.”
Elsie Otieno, Managing Director of Impact Marketing Kenya, a corporate branding company said: “We have partners here and we are soon opening a shop in Kigali and we have already registered it.
“Transportation process has no problem but the problem comes from customs union, right here in Kigali where there is full of bureaucracy.
“We came here for the EXPO but since last week before the show started, our products have been locked at Majerwa and released after three days and this is not doing business at all.
“Tax fares and communication breakdown is really crippling business environment in Rwanda. We told them this is COMESA; our government and COMESA secretariat had already told us that we shall not pay taxes.
“I was forced to pay taxes, yet I am just exposing my locally produced goods and not selling” Otieno laments adding: “Even the tax I paid at first I was told to pay Frw 50.000 another tax officer said it should be Frw 45.000, another tells me Frw 10.000 …and I was really pissed off and since I knew my rights, finally I ended paying Frw5,000” Otieno revealed.
She however, hastened to clarify that such contradicting tax rates by the tax officers is not corruption but called it “communication breakdown” because people are not willing to understand the law imposed by the government.
She said it’s very important for the government of Rwanda to stand up and educate people at the ground level particularly the customs union lower cadres about the East African community partnership first, otherwise doing business in Rwanda is messing up.
A Burundian Entrepreneur who never wanted his names to be published told igihe.com; “We know our rights when we come to Rwanda but it has been violated here particularly in customs union.
“They have to change the system of handling EAC people and know that we are one and therefore, should be given the first priority.”
Jane M Munyao, Chairperson of East Africa Women Entrepreneurs pointed out: “We are all Rwandans because we are in East Africa Community and we share brotherhood, but we are anoyed because when it comes to doing business in Rwanda, the first priority is given to foreigners like those coming from Pakistan and other Asian countries.
“ They shouldn’t charge taxes on goods produced in EAC region like they are doing.”
According to her, all sectors involved in doing business should educate their juniors because they are the major hindrance to the business community and they lack customer care service delivery, they have a lot of bureaucracy.
Andrew Lubaale, Trade Show Coordinator of Madhvani Group said: “Top officials here are very good and welcoming but the biggest challenge upon getting into the country is the poor assistance from lower cadres.
“My personal experience is that I was coming to Rwanda with company’s products and reached at the Rwandan border at 2pm but I left the place at about 5:30pm and from there my truck is again locked up at Majerwa for 3 days.
“Above that they are billing me for all the days it has been there, yet it’s not my mistake and I was really frustrated.
“I also had to pay for the clearing and forwarding company and the amount I paid is now equivalent to the items I brought yet I am just exposing and not selling, is this viable business?
According to Lubaale, the items he brought cost him Uganda Shs 974, 000, paid clearing agency Shs 900, 000, to get the truck out Majerwa cost him Frw11, 000 for packing, transporting back the customs’ agent took him Frw7,000 and renting the stand took him US$1350.
John Tumwesigye, the Marketing Manager, Movit Products based in Uganda observed that: “Rwanda’s doing business should first harmonize tax fares, bureaucracy in custom unions, and train workers about customer service handling because these are the only areas that hinder Rwanda’s business environment otherwise Rwanda is the best country to do business from”
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