7 June 2012

Rwanda: Province Targets 20 Percent Increase in Tax Revenues

Huye — The Southern Province has set itself a target to increase its tax revenues by 20 per cent, to Rwf4.1bn, during the 2012/2013 financial year which starts in July.

This was announced Tuesday during a provincial consultative meeting which brought together district mayors, the private sector, civil society and other development partners, among others.

The participants discussed the current level of performance across the eight districts and the new set targets for the next fiscal year.

The revenues will be generated from a number of taxes in the eight districts making up the province.

The new bar that has been set is higher than the previous year's where during 2011/2012, over Rwf3.2 billion was collected from the province.

Huye district is expected to generate more revenues compared to other districts, with a set target of over Rwf800 million.

Speaking during the function, the provincial Governor, Alphonse Munyantwali, observed that the targeted amount will be generated from property tax, land lease tax, rental tax, and a number of other channels.

"In some districts, the number of taxpayers has increased mainly due to the establishment of new businesses and encouraging business operators to abandon the informal sector," Munyantwali said.

"We are hopeful to reach our target, and if possible, surpass it".

Speaking to The New Times, Nyanza District Mayor, Abdallah Murenzi, noted that the targets will be reached considering the environment they were working in.

"Tax laws have been revised allowing us to collect more taxes than we used to while new investment projects are currently underway, increasing the number of taxpayers," he said.

"We will work hard to sensitise all concerned individuals to meet their fiscal obligations; everyone will be reached in this quest."

During the 2012/2013 fiscal year, Nyanza district targets Rwf 450 million in taxes up from Rwf 350 million.

During Tuesday's meeting, it was disclosed that the Southern Province had fulfilled its performance contracts by 73%, according to figures collected in mid May, meaning the percentage could go up by the closure of the fiscal year.

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