Rwanda Revenue Authority (RRA) targets a 4.8 percent increase in revenue collection for the fiscal year 2011/2012 from Rwf 491 billion last year to Rwf 515 billion, a reflection of the body’s commitment to increase its contribution to the national budget.

The Director of Planning and Research at RRA, Charles Gakwaya, said that a number of critical implementations and reforms have been made to close the tax collection gaps and meet targets.

"RRA plans to introduce electronic transaction devices that will help traders to track tax payment records and make their revenue transactions easily and efficiently online,” Gakwaya said, in an interview yesterday.

"When finally implemented, the electronic transaction device will help us to improve the collection of VAT, which has been constantly evaded and costing the nation money.”

The standard VAT charged by RRA is 18 percent on businesses with an annual turnover of Rwf 20 million. However, last year VAT payment was ineffective and cost the authority an estimated Rwf1.5 billion monthly.

In his budget presentation for 2011/2012, the Minister of Finance, John Rwangombwa, said that government expects Rwf 4.2 billion from VAT collections, a realization which will depend on how fast the electronic transaction device system is implemented.

RRA is also banking on the introduction of gaming tax to increase its revenue by Rwf 186 million from gaming activities.

Last year, large taxpayers contributed 37 percent of the annual RRA collections, small and medium enterprises contributed 26 percent, the customs department 33 percent while other activities contributed 4 percent.

Over the weekend, RRA celebrated Taxpayer’s Day for the 10th time and presented awards to the best and most compliant taxpayers.

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