Madagascar becomes fifth country to adopt Rwanda's EBM tax system

The Rwanda Revenue Authority on Monday, March 30, signed a cooperation agreement with Madagascar’s tax office to support the rollout of Electronic Billing Machines (EBM), aimed to strengthen tax compliance and boost revenue collection. Under the partnership, Rwanda will share its experience and technical expertise in implementing EBM systems, which have been credited with improving transparency and efficiency in tax administration. ALSO READ: How RRA achieved a record Rwf3.2 trillion in revenue The agreement makes Madagascar the fifth country to which the RRA has exported the system, with more than 30 countries visiting Rwanda to learn from its implementation. “Kenya and Uganda have already adopted the system, Zambia is in the process, Chad and Madagascar are now coming on board. We also receive between 20 and 30 delegations seeking to learn from Rwanda’s experience,” said Jean-Paulin Uwitonze, the Assistant Commissioner in charge of Taxpayer Services at RRA. ALSO READ: RRA cracks whip on businesses snubbing electronic invoicing system According to Malagasy Director General of Taxes Edmond Rafaralahy, the agreement will serve as the foundation for knowledge transfer, not only by facilitating the acquisition of tools, but also by fostering a culture of performance. “The transfer of skills will enable our staff to adopt best practices in fiscal governance and change management. It will also allow us to build on RRA's expertise as we address the challenges of modernising revenue collection systems,” he said. “It further includes the transfer of technology to integrate innovative solutions tailored to our national context. For Madagascar, this means ensuring the interoperability of our systems, safeguarding data integrity from the point of sale, and anticipating the challenges related to technical maintenance.” Rwanda introduced EBM in 2013 as part of efforts to modernise tax collection. Since then, the system has improved the issuance of receipts and compliance among traders, with more than 90 per cent now using the platform. “The introduction of EBM has led to a significant increase in the number of registered taxpayers, particularly under value-added tax (VAT) category, with figures doubling and, in some cases, tripling over time,” Uwitonze said.. “The system has proven to be an innovative tool, with measurable impact not only on VAT collection but also on other revenue streams..” The system has also improved oversight by providing real-time data on business transactions, helping authorities detect tax evasion and enforce compliance more effectively. “We now have better visibility of taxpayer activity, including turnover, which informs taxation across different categories such as income tax, trading licences and more.” Beyond supporting Madagascar, RRA says the partnership offers opportunities for Rwanda to learn and improve its own systems. “When countries implement the solution we developed, they often introduce new features or innovations. We are able to learn from that and continuously enhance our own platform,” Uwitonze said. He added that such collaborations create a platform for knowledge exchange, strengthening tax administration systems across participating countries. RRA collected more than Rwf3.2 trillion in tax and non-tax revenues during the 2024/25 fiscal year, up from Rwf2.7 trillion the previous year, representing an increase of 17.5 percent, compared to the previous year.

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Madagascar becomes fifth country to adopt Rwanda's EBM tax system