The Rwanda Revenue Authority (RRA) has reported a 15 percent increase in voluntary tax compliance, attributing the improvement largely to enhanced service delivery.
This finding emerged from an RRA survey presented during the third annual RRA Research Day on Friday, March 7, held under the theme "Enhancing Voluntary Tax Compliance Through Service Delivery."
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Ronald Niwenshuti, RRA Commissioner General, emphasized the role of analysis and data-driven decision-making in optimizing Rwanda’s tax system.
"Through surveys, we identify inefficiencies in tax collection, understand taxpayer behavior, and develop targeted interventions to enhance voluntary compliance,” he said.
Niwenshuti added that with continued efforts in research and innovation, RRA aims to further strengthen voluntary tax compliance and improve taxpayer satisfaction across the country.
Jean Paulin Uwitonze, Deputy Commissioner for Taxpayer Services and Communications at RRA, reaffirmed the impact of quality service delivery on tax compliance.
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"According to international standards, research shows that good service delivery encourages taxpayers to voluntarily fulfill their obligations, leading to a 15 per cent increase in compliance,” he said.
Uwitonze highlighted findings from the 2021 study, which showed that 75 per cent of taxpayers were satisfied with RRA’s services and 95 per cent of the issues causing dissatisfaction had already been addressed.
"Given the significant improvements made since then, we anticipate even higher satisfaction levels in this year’s research,” he added.
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Uwitonze further highlighted that one key issue identified in previous studies was employee behavior. While behavioral change is gradual, significant efforts have been made to improve service efficiency.
"For instance, delays in obtaining tax exemption certificates previously caused businesses to miss out on opportunities, affecting their profits and RRA’s revenue. Today, this certificate is issued digitally within three minutes,” he indicated.
Additionally, tax declaration processes have been streamlined, and take less time via RRA’s website, ensuring a more seamless experience for taxpayers.
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Thierry Kalisa, Chief Economist at the National Bank of Rwanda, underscored the role of research in evaluating the impact of fiscal policies, such as taxation and government spending, on economic growth.
Field agents and compliance
Belyse Umuhozari, a research and policy analyst at RRA, explained that the study analyzed data from 2022 to 2024, focusing on the impact of field agents who encourage the use of electronic billing machines (EBM).
"Findings indicate that field agents played a crucial role, as their presence led to enforcement measures that resulted in increased tax revenue. However, the survey also revealed that Nyarugenge District had a high number of non-compliant taxpayers who do not issue EBM receipts,” Umuhozari noted.
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She emphasized that strengthening the deployment of field agents in other districts could further enhance tax compliance rates.
Enhancing research and service delivery
The research day served as a platform to advance tax-focused studies in Rwanda, facilitating discussions on best practices and fostering collaboration among tax administrations in Africa.
Félicien Usengumukiza, Deputy Chief Executive Officer at Rwanda Governance Board, emphasized the interconnectedness of research and service delivery.
"Research provides the empirical foundation for effective policies and reforms, while service delivery ensures these policies are effectively implemented,” he said.