3 September 2012

Rwanda: Sensitisation, Technology Key to Increasing Tax Revenues


LAST week, during the celebrations of the Tax Payer's Day, the Rwanda Revenue Authority (RRA) announced plans to open ten service centres that would facilitate electronic declaration and payment of taxes.

Over time, the tax body has adopted modern technology to ease taxation. But with the continuous advancement of technology, there are still many tools that can facilitate the payment of taxes.

Taxes are key to meeting the country's development goals. More than 52 per cent of this year's budget is expected to be funded by locally generated revenues. RRA has raised the target collection to Rwf640 billion, up from Rwf532 billion last year. The revenues from taxes are among the main contributors to the national budget.

However, RRA still faces a serious challenge of tax payers who do not fulfill their obligation.

Smuggling and under-declaration are some of the common practices that have cheated government of its revenues.

Continuously educating the public about taxation coupled with easing the tax payment process, through use of modern technology among other moves, will go a long way in ensuring that tax payers meet their obligation.

Furthermore, Rwanda's goals include weaning itself off aid. This will not be achieved if we, the Rwandan people, don't contribute towards financing the national budget.

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