There will be no further deadline extension on the implementation of electronic billing tax machine technology after the March 31, 2014 deadline expires, Richard Tusabe, the Rwanda Revenue Authority (RRA)’s commissioner General has said.
There will be no further deadline extension on the implementation of electronic billing tax machine technology after the March 31, 2014 deadline expires, Richard Tusabe, the Rwanda Revenue Authority (RRA)’s commissioner General has said.
Tusabe said business operators have had enough time to have this new technology installed.
The Commissioner General made the remarks during a meeting with taxpayers and other stakeholders at the RRA head quarters in Kigali last week. He said businesses risk substantial fines if they fail to beat the deadline.
"We want inclusive growth, and everyone should contribute to the economic development of the country. The only way to do this is to remit taxes promptly and efficiently,” Tusabe said.
About 32 per cent of business entities are already using the new electronic billing technology, according to RRA officials.
About 700 businesses have applied to be exempted from using the new technology, citing inconsistencies in the technology.
They include those from the mining sector who claim that the new technology does not incorporate foreign exchange fluctuations.
The new technology was introduced in February 2013 to curb tax leakage, improve efficiency, and tax compliancy. The move according to Drocelle Mukashyaka, the RRA deputy commissioner for taxpayer services department, will help reduce the cost of doing business and increase accuracy in tax remittance.
"Besides combating tax evasion and corruption, the technology will provide a more balanced market share and equal business opportunities for every entrepreneur,” Mukashyaka said.
Rwanda’s actual domestic revenues stood at 16 per cent of GDP (the value of all goods and services) during fiscal year 2012/2013. Tax revenues accounted for 14.2 per cent while the value of non tax revenue was 1.8 per cent of GDP, according to World Bank Rwanda economic update report, 2014.
Statistics from the Ministry of Finance and Economic Planning indicate that RRA surpassed its revenue collection target by Rwf22 billion for the second year in a row during the fiscal year 2012/2013.