Kigali City Council has warned business operators who evade paying taxes that harsh penalties await them.
Addressing a transport operators' meeting, the vice mayor in charge of Finance and Economic Planning, Alphonse Nizeyimana, urged them and other business operators to fulfil their fiscal obligations.
"We are going to start impounding or fining vehicles found without trading license and the owners of these should not be shocked with this move, because we have informed them well in advance," Nizeyimana said.
The move comes after Parliament in December last year passed a law governing the collection of property and rent tax and other fees. It became effective in January this year.
The remitting of trading license tax should not exceed March 31 of every year; however, according to Nizeyimana, 20 percent of the city traders have not yet remitted the taxes.
KCC officials said most of the transport operators tend to dodge such taxes, a move that would lead to the impounding of their vehicles by the police.
A taxi moto operator and vehicles pay taxes of Rwf 8,000 and Rwf40, 000 annually, respectively. Defaulters are fined Rwf 10, 000.
The transporters requested KCC to be lenient to those who might have failed to meet the deadline, saying some taxi operators may find it challenging to pay the tax.
"There should be a grace period granted to us in case some fail to raise that amount of money required," Issa Ngeze, the Managing Director of International Express.
But Ngezi's request was dismissed by Nizeyimana, saying the concerned should always prepare to pay the tax before the deadline draws nearer.