In a bid to maintain a favourable investment climate in Rwanda, $4.1 million equivalent to Rwf2,316 billion has been set to facilitate taxpayers’ on-line filing and electronic payment systems.
The grant is comprised of 61 percent ($2.5m) from Investment Climate Facility for African and the remaining 39 percent ($1.6) will be contributed by the government through Rwanda Revenue Authority (RRA).
The project will oversee the modernisation of the Rwanda’s tax administration in RRA through introduction of an electronic filing and payment system.
According to a press statement from ICF, the number of the filing process will be reduced from 23 days to one day and from three locations to one location.
This was mentioned during the official unveiling ceremony at the Ministry of Finance and Economic Planning. The grant agreement was signed between the Finance Minister James Musoni and Omar Issa, Chief Executive Officer of ICF for Africa.
Musoni said that tax administration was among other challenges that needed government’s attention to improve the investment climate in Rwanda.
The big package will be allocated for technical activities which include e-payment, e-filing and the development of a new module to collect social security and health contributions.
“Tax administration has been a challenge in the process of improved business environment and with this facility will maintain the momentum of our ranking in the doing business report, Musoni said.
Musoni was optimistic that after the completion of the project, Rwanda will be able to move from the position of 67 to 30’s. Other challenges that were mentioned are, construction permits and cross boarder trading.
The ICF chief said that tax collection should not only be improved but also be done in a friendly manner.
He hailed RRA’s ambitious targets of reducing days to acquire tax clearance certificate from three days to ten minutes. Similar projects are ongoing in South Africa, Lesotho, Tanzania and Zambia.
ICF support has priorities in taxation and customs, financial markets, labour markets, business registration and licensing, and property rights and contract enforcement.
ICF is also supporting Rwanda to improve on the investment climate, judiciary system and in energy sector.