Rwanda Revenue Authority has announced the removal of Tax Clearance Certificates (TCC) on transfer of ownership of motor vehicles.
The certificate was prerequisite for people to change ownership and Rwf 5,000 was levied for procurement of this document which took almost a week to get.
This, according to officials, is in line with facilitating trade and improving service delivery within the region.
Pierre Celestin Bumbakare, Commissioner for Domestic Taxes, said that originally taxpayers were taking long to get the document on top of costing money.
He added that this involved a number of stages that included verification of taxpayer account.
“Since we already have such information in our systems, we find no need for a taxpayer to make countless movements to the tax administration to find proof of payment for him to carry out the needed motor vehicle transfer exercise”.
“I’m optimistic that this will be cost effective and also reduce on time taken,” Bumbakare noted.
According to instructions issued to the Motor vehicle Division in RRA, the new directive took effect on December 18.
Experience has shown that taxpayers flock RRA office on several occasions in search for such documents and the new development will not only save the taxpayers the inconvenience, but also save RRA’s image.