Best taxpayers recognised as EBM use drives up VAT collection

Forty outstanding taxpayers of the 2022/2023 fiscal year were, on December 22, awarded by the government, through Rwanda Revenue Authority (RRA), during the 21st Taxpayers Appreciation Day ceremony held in Kigali. It was in line with the 2023 Taxpayer Appreciation Month organised under the theme Request for EBM Receipt to Build Rwanda.” During the celebration, RRA Commissioner General Pascal Bizimana Ruganintwari said that the use of Electronic Billing Machine (EBM) technology yielded good results. “For instance, value-added tax (VAT) almost tripled compared to the last five years as it rose from Rwf259.1 billion to Rwf649.8 billion,” he said adding that VAT taxpayers increased fourfold. “This also contributed to Corporate Income Tax as it increased by more than five times from more than Rwf45.7 billion to Rwf259.2 billion,” he said. Though progress was achieved in line with taxation in the country, he said, there are still gaps in the use of EBM because some taxpayers do not use them, as well as undervaluation of goods in some cases, which hinder tax collection. He indicated that such issues must be tackled, adding that RRA will continue to integrate technology in service delivery to further facilitate taxpayers, and make tax collection more efficient. ALSO READ: MPs propose ‘adequate’ VAT reward to consumers as law is passed Speaking at the event, Prime Minister Edouard Ngirente appreciated taxpayers who performed well in meeting tax obligations and urged all Rwandan residents “to make EBM use a culture,” and contribute to the development of the country through effective tax payment. “In line with tax payment vision, we also want to provide greater rewards to those (consumers) who request EBM [invoice] and present it,” he said, adding that both the trader and consumer must make EBM use a responsibility. He said that if every person who must pay tax does it, and EBM compliance is ensured, it would be easy to achieve – and even surpass – the target for fiscal year 2023/2024 to generate tax revenues enough to fund 52 per cent of the more than Rwf5 trillion national budget. Who are the best taxpayers? The awards were topped by BRALIRWA as Overall Best Taxpayer 2022 National level. Overall contributors Kigali and Provinces At Provincial level, Overall Best Taxpayer 2022 Northern Province went to Gorilla Nest Lodge & Golf Resort (also known as One&Only), Nshili Kivu Tea Factory outperformed other taxpayers in Southern Province, Pfunda Tea Company did the same in Western Province, while Manebu Industries excelled in Eastern Province. Jean Bosco Nkundunkundiye scooped Overall Best Taxpayer 2022 Local Government Taxes. Best large taxpayers: Five entities were awarded in this category. They are namely MTN Rwandacell, Mota-Engil, IHS Rwanda, CIMERWA, and I&M Bank (Rwanda). Best small taxpayers upgraded to large taxpayers Also referred to as growing taxpayers’ category, its awardees are Prime Cement, Kasese Distillers & Distributors, Africa Lubricant Manufacturing Co., and Shema Power Lake Kivu. Best medium taxpayers: Winners in this category are COFATOLE, a company that manufactures of steel construction materials, Thousand Hills Africa, Imizi Eco-tourism Development, and Construck. Best micro individuals Three people were appreciated for their outstanding performance in this category. They are Augustin Byukusenge, Anastase Nizeyimana, and Belinda Karenzi. Best in Local Government taxes Joram Mugwaneza, Ruth Mukantabana, and Jobanputra Ramnik Shakuntala were awarded as best taxpayers in local government taxes. Best exporters Equinox Mining, FG Investment (R), and Simbi Coffee Investment were the winners in export-related tax compliance. Best importer In this category, Bakhresa Grain Milling (Rwanda) – also known as Azam –outclassed other taxpayers. Special categories In special categories, DUHAMIC-ADRI was the best local non-governmental organisation (NGO) taxpayer, while the International NGO award went to Partners in Health. The manufacturing sector best taxpayer award went to Master Steel, while University of Global Health Equity, performed well in voluntary disclosure. According to the International Monetary Fund, voluntary disclosure allows taxpayers to comply with the tax laws and “come clean” about past tax-law infringements. Best EBM user Skol Brewery, Inyange Industries, and Radiant Insurance Company, were recognised for their compliance with EBM use. Tax Compliance Initiative in self-regulatory sector This recognition was given to Rwanda Wood Value Chain Association, ADARWA Association, and APARWA Association, whose work seeks to promote carpentry in Rwanda. Best Consumer Jean Claude Mwizerwa was awarded as the best consumer for requesting EBM receipts for his purchases. Mwizerwa said that he was encouraged to do that the main resource that the country has is its people, as well as accountability in the country’s development. “You can have a major impact in the development of your country through requesting EBM receipts,” citing funding security, and infrastructure. Meanwhile, Kepler College was announced the winner of RRA student debate on taxation, 2023.

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Best taxpayers recognised as EBM use drives up VAT collection