Treasury loses over Frw300m in tender, consultancy services

KICUKIRO - Over Frw300 million has been lost in uncollected taxes since 2002, a top Rwanda Revenue Authority (RRA) official estimates.
Rwanda Revenue Authority senior staff. Drocella Mukashyaka, Head of Taxpayer Education (L), Céléstin Bumbakare, Commissioner Domestic Taxes and Alfred Ndihokubwayo addressing accountants at Alpha Palace Hotel in Kigali yesterday. (Photo/I. Nambi).
Rwanda Revenue Authority senior staff. Drocella Mukashyaka, Head of Taxpayer Education (L), Céléstin Bumbakare, Commissioner Domestic Taxes and Alfred Ndihokubwayo addressing accountants at Alpha Palace Hotel in Kigali yesterday. (Photo/I. Nambi).

KICUKIRO - Over Frw300 million has been lost in uncollected taxes since 2002, a top Rwanda Revenue Authority (RRA) official estimates.

Several public tenders and consultancy services are awarded by public institutions but it is emerging that accountants in are not collecting withholding tax from the service providers.

The law requires that all services offered within and outside the country be taxed. 

“Unfortunately accountants have not been collecting the 3 per cent from each tender. They have also not been collecting the 15 per cent from consultancy services, Celestine Bumbakare, Commissioner for Domestic Taxes, RRA said.

Bumbakare was yesterday was addressing a one day meeting at Hotel Alpha Palace in Remera in Kigali. The meeting organised by RRA was attended by accountants and directors of finance from several public institutions.

Bumbakare was concerned that people come from other countries and carry out consultancy work in Rwanda and then walk away without paying taxes.

“We are going to enforce this payment but the first step is to caution you so that you manage your accounts better,” Alfred Ndihokubwayo, the head of audit section of RRA said.

Accountants speak out

Accountants claimed that service providers from different countries refuse to pay saying they are subjected to clear the same taxes in their countries.

Bumbakare however responded by saying whoever offers services within and out of the country should be taxed and given of tax clearance certificate.

“This will solve any cases of double payment when they go back to their countries,” he added.

J. Karangwa, a representative from immigration office also suggested that the tax body should collect the tax. He also added that the service providers clear up the profit tax before they are paid by whoever hired them.

“I certainly think that we are doing most of RRA’s work by collecting taxes for them. So the system should be changed,” he said.

Others requested RRA officials to help sensitise them about the taxation law such that they know who to tax and how much.

Bumbakare referred everyone to use the newly updated RRA web site saying it has all the information required. He said the taxation policy book is also on sale at the authority’s headquarters in Kimuhurura.

“Such can widen one’s understanding of the taxation law,” he said.

Ends

 

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