In a press conference on Wednesday, RRA explained that they achieved their target at 101.8%. When compared to the first semester of 2016/2017 fiscal year where RRA collected Rwf507.5 billion, tax revenue collections grew by 14.8%.
Non-tax revenue collections amounted to Rwf8 billion compared to the target of Rwf7.4 billion which reflects a performance of 108.6%.
Local Government taxes and fees collections amounted to Rwf19.8 billion against a target of Rwf19.1 billion which reflects an achievement of 104%. This represents year-on-year growth of 19.9% and a nominal increase of Rwf3.3 billion.
RRA Commissioner General, Richard Tusabe said that the growth is attributed to strong economic environment, low inflation rate, good agricultural performance, increased taxes arrears collection and increased Value Added Taxes (VAT) turnover.
Tusabe said that the economy was projected to grow by 6.5% during 2017/2018 fiscal year but the data released recently by the National Institute of Statistics of Rwanda shows a growth of 8% for the 1st quarter the same year.
He said inflation was forecasted at 6.6% for 2017/2018 fiscal year, but the outturn was lower with inflation averaging 2.8% between July and December 2017.
According to Tusabe, the first quarter of agricultural season was good with growth of 8% things which resulted in good performance in revenue collections. Taxes arrears collection also increased by Rwf12 billion (72.8%).
According to RRA, VAT turnover declared increased by 16.9%, compared to 9.6% in July to December 2016.
Also the petroleum imports for local consumption increased by 3% compared to July to December 2016.
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