Only 30 % taxes paid to Kigali City

With just over two weeks to the deadline for paying taxes for the financial year 2010, only 30 percent of taxpayers have so far honoured their obligation to Kigali City, Alphonse Nizeyimana, the vice Mayor in charge of Finance and Economic development in Kigali City said yesterday.

With just over two weeks to the deadline for paying taxes for the financial year 2010, only 30 percent of taxpayers have so far honoured their obligation to Kigali City, Alphonse Nizeyimana, the vice Mayor in charge of Finance and Economic development in Kigali City said yesterday.

During a news conference, Nizeyimana said that only Rwf 3 bn out of Rwf 13.9bn has so far been collected and warned all those who fail to meet the March 31 deadline.

“For those who will have not have paid the taxes, the law will take its course,” Nizeyimana said, adding that they will face surcharges as provided by the law while others will have their shops closed.

According to the law, all those who fail to meet the deadline face fines of 40 percent of the total tax supposed to be paid and 1.25 percent increment every month that elapses before clearing their taxes.

The taxes affected include, property tax, rental income tax and trading licence tax.

“Where necessary, the tax evaders’ properties will be auctioned,” Nizeyimana added.

Most of those who have paid the taxes, he added are small business operators.

Meanwhile, a campaign to sensitise traders in the city to pay taxes on time kicked off yesterday.

Aimable Gasana Ndakengerwa, the Director General of Kigali City who heads the campaign, said that this will help them have more taxpayers honour their fiscal obligations, adding that most of them are not informed about the deadline and the fines they face for noncompliance.

“Through this, we believe more taxpayers will be able to pay before the deadline,” Ndakengerwa said.

Kigali city had since the beginning of this financial year deployed more tax inspectors in sectors and districts and tax receipts taken to sectors from the districts to ease tax payments.

This was after tax expectations increased by about 115 percent from Rwf 6.5b in 2009 financial year to Rwf 13.9b in 2010.

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