RRA revenue collections up 9% as taxpayers' month kicks off

Rwanda Revenue Authority head office at Kimihurura . / File

By 

Edwin Ashimwe

Rwanda Revenue Authority (RRA) says it has exceeded the revenue

collection targets for the fiscal year 2020/2021 by over 60.1 billion despite pandemic disruptions.

The taxman said that total tax and non-tax revenue collections amounted to Rwf1,654.5 billion against the target of Rwf1,594.3 billion, representing a 9.4 per cent increase.

 

The Deputy Commissioner General of RRA, Jean-Louis Kalingondo, disclosed this yesterday at the launch of the 19th Taxpayers Appreciation Month. 

 

The taxpayer appreciation month is held annually to recognise and appreciate compliant taxpayers as well as showcase the impact of collected taxes on the country's economic development.

 

This year’s activities will be held under the theme, “Moving Forward Together for Economic Recovery.” 

Kalingondo attributed the good revenue performance to the resilience and commitment of the taxpayers.

“Our taxpayers have been resilient and committed to meeting their tax obligations despite the challenges being faced as a result of the Covid-19 pandemic."

He added, "We have also worked hand-in-hand with them to introduce solutions and initiatives that help us improve compliance as well as lower the cost of tax collection."

In his remarks, Kalingondo disclosed that local government taxes and fees collections for the 2020/21 fiscal year was Rwf77.8 billion representing 94.3 per cent of the Rwf82.5 billion target.

He said that even though the figure is below the set target, it represents a year-on-year increase of about 25.6 per cent.

Data from RRA indicate that in the first quarter of the fiscal year 2021/2022, non-tax revenues collected amounted to Rwf416.7 billion, representing 99.1 per cent of the 420.4 billion; while the target for tax and non-tax of the whole fiscal year is Rwf1,755.5 with a nominal increase of Rwf120.1.

The authority missed the quarter 1 target by Rwf3.7 billion, compared with the previous collection of 2019/20, but this year's collection increased by 11.0 per cent.

"Since the outbreak of the Covid-19 pandemic, most businesses were significantly affected, some are still struggling while others are just getting set to recovery, and this has definitely affected our tax collection, especially in the first quarter when there was a lockdown enforced in the City of Kigali and some parts of the country,” said Kalingondo.

Throughout the taxpayer’s month, various activities are lined up in celebration.

One of the major concerns raised by business owners include the inaccessibility to the recovery fund.