Companies boost Rwanda’s coffers

A growing sense of ‘paying tax is my obligation’ among the country’s companies combined with healthy corporate profits and high consumption rates boosted the country’s revenue receipts for January and February.
Goods at Magerwa warehouse in Gikondo.
Goods at Magerwa warehouse in Gikondo.

A growing sense of ‘paying tax is my obligation’ among the country’s companies combined with healthy corporate profits and high consumption rates boosted the country’s revenue receipts for January and February.

Preliminary figures provided by Rwanda Revenue Authority (RRA) put revenue for the two months at more than Frw43.2 billion, above the 39.2 billion, and about Frw4 billion more than the original target. Last year during the same period, the tax body only managed to collect Frw33.2 billion.

“As the economy grows the consumption rates increase,” Annette Birungi RRA’s publicist said, explaining why VAT collections were more.

Eugène Torero, RRA deputy director general described the revenue collection “as fair.” Reasoning that this was a period when most East African economies that depend on Mombasa port for supplies almost stopped during the Kenay post election crisis as there was no business.

“Government took a right decision to import through Dar es Salaam port,” he said on phone. With the booming economic activities, taxes on goods and services also performed well in the months of January. The target was exceeded by 5.2 per cent.

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