Rwanda Revenue Authority (RRA) has warned traders who refuse to issue Electronic Billing Machine (EBM) receipts that they are liable to heavier punishments.

EBM helps keep track of collected taxes that comprise the largest share contributor to the national budget used in many domains of developing the country.

During a joint press conference with RRA, Rwanda Inspectorate, Competition, and Consumer Protection (RICA), the Private Sector Federation (PSF), and Rwanda National Police, the officials highlighted different ways used by merchants to evade taxation.

Hajara Batamuliza, Commissioner for Domestic Taxes at RRA, said the body has continuously created awareness on the use of EBM gadgets which were later phased out and are being replaced by its second version of a software.

She indicated that henceforth, every merchant who will be caught not issuing EBM receipt on every sale will be charged with fines and penalties, liable to stock analysis in order to recover all taxes evaded, and be prosecuted by court of law, as well as business closure for 30 days.

Batamuliza added that every buyer whose purchases are not supported by EBM receipt, the goods will be seized and auctioned.

According to the Head of EBM System Management at RRA, Emmy Mbera, generally there has been an increase in EBM users, where at least 600 users are registered every week, totaling 77,529 users so far since it was introduced in 2013.

In the fiscal year, 2021/2022, RRA has collected Rwf1,885.6 billion tax revenue.

However, he said that importers make the majority of tax evaders, where once they do an under evaluation at customs clearance, they are not able to give a full EBM receipt and this affects the whole trading chain.

Emmanuel Mugabe, Consumer Protection officer at RICA, said that when traders are involved in malpractices such as charging buyers more money for goods than the standard prices, it puts more burden on the last consumer.

Hence, he emphasized, that merchants are required to mark each commodity with its specific price, visible to everyone.

Rwanda National Police spokesperson, CP Jean Bosco Kabera, noted that businesses should take it upon themselves to comply with issuing EBM receipts to clients without waiting for punishments.

He further indicated that the concerned authorities are going to work together in monitoring compliance across different sectors.