Rwanda Revenue Authority (RRA) collected Rwf3,956.4 billion in taxes during the 2025/26 fiscal year, achieving 104.2 per cent of its target of Rwf3,795.4 billion. The update was announced during a press conference held on July 8 at RRA’s headquarter. ALSO READ: How RRA achieved a record Rwf3.2 trillion in revenue RRA Commissioner General Ronald Niwenshuti said the revenue collected represents a 27.7 per cent increase compared to the 2024/25 fiscal year. “Over the past ten fiscal years, the Rwanda Revenue Authority has strengthened its collaboration with taxpayers and other stakeholders to promote voluntary tax compliance,” he noted. “Through the Compliance Improvement Plan, RRA engages taxpayers and stakeholders by identifying compliance risks, communicating them openly, and agreeing on appropriate actions to enhance compliance,” he added. Niwenshuti highlighted that local government revenue reached Rwf137.9 billion during the same period, achieving 102.4 per cent of the target of Rwf134.6 billion. ALSO READ: RRA exceeds 2024/25 revenue target by Rwf38bn The Commissioner General clarified that the figures are preliminary, saying that the final figures will be confirmed after the completion of the reconciliation process. “This strong performance reflects favourable macroeconomic conditions, effective tax administration, successful implementation of tax policy measures, and sustained improvements in taxpayer compliance,” he noted. Key drivers Niwenshuti attributed the strong performance particularly to strong economic growth, improved VAT performance, increased corporate profitability and employment income, improved customs performance, and strengthened tax administration and compliance measures. During the first three quarters of the 2025/26 fiscal year (July 2025–March 2026), real GDP grew by 11.0 per cent, exceeding the projected 8.1 per cent, mainly driven by growth in the industrial and services sectors. Business turnover increased by 23.7 per cent, while the share of vatable sales rose from 52.3 per cent to 59.2 per cent, expanding the VAT base. ALSO READ: Rwanda’s tax revenues grow 38-fold Taxable income increased by 22.9 per cent, compared with 1.9 per cent growth in the previous fiscal year. Taxable employment income increased by 14.6 per cent, while Pay As You Earn (PAYE) payable grew by 16 per cent. Similarly, there was an improvement in customs performance, with the value of taxable imports increasing by 29.6 per cent, contributing to higher customs revenue. As part of efforts to expand the taxpayer base, RRA registered 126,282 new taxpayers, who contributed Rwf15.4 billion in tax revenue. The authority said it also recovered Rwf277.1 billion in domestic tax arrears through strengthened enforcement measures. ALSO READ: Districts’ revenues nearly tripled in the last decade: what next? To improve VAT compliance and transaction traceability, 43,243 additional taxpayers adopted Electronic Billing Machines (EBMs). RRA said it strengthened Corporate Income Tax compliance through enhanced system controls and proactive follow-up on unsupported expenses, which improved the accuracy of tax declarations and reducing underreporting. The tax body completed 1,883 tax audits, resulting in additional tax assessments and payments amounting to Rwf9.3 billion. At the same time, new tax policy measures generated Rwf286.7 billion, representing 110.6 per cent of the Rwf259.2 billion target. Voluntary compliance The VAT Reward Scheme, including Tengamara na TVA and Tenga Promo, recorded significant growth. Registered participants increased from 74,964 in June 2025 to 1,096,931 by the end of June 2026. Invoices requested by participants reflected VAT output of Rwf105.8 billion, while Rwf4.2 billion in VAT rewards was paid to final consumers during the 2025/26 fiscal year. RRA also intensified investigations and anti-smuggling operations. A total of 163 investigation cases were completed, resulting in tax assessments amounting to Rwf21.4 billion. In addition, 1,542 anti-smuggling operations led to assessments totalling Rwf29 billion. ALSO READ: Proposed tax changes set to rake in Rwf300bn annually Joint EBM compliance campaigns conducted with the Rwanda National Police covered the City of Kigali and five districts outside Kigali. More than 12,000 taxpayers adopted EBMs, resulting in the recovery of Rwf3 billion in penalties. Through data analytics, RRA also identified and blacklisted fictitious invoices. This process prevented fraudulent VAT claims estimated at Rwf28 billion.
