The Rwanda Revenue Authority (RRA) has set a target of collecting Rwf4,640.4 billion in central government revenue and Rwf165.9 billion in local government revenue during the 2026/27 fiscal year.

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If achieved, the target would mark an increase from the Rwf3,956.4 billion collected for the central government and Rwf137.9 billion for local governments in 2025/26.

RRA Commissioner General Ronald Niwenshuti said the projected revenues will finance about 61.6 per cent of the Rwf7,796.3 billion national budget, underscoring the importance of tax compliance in Rwanda&039;s socio-economic development.

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He said RRA will strengthen compliance across key tax obligations, including taxpayer registration, timely filing and payment of taxes, and accurate tax reporting.

Key sectors under scrutiny

Niwenshuti said targeted compliance efforts will focus on domestic taxes in the manufacturing, transport and storage, information and communication, professional services, education, real estate, and construction sectors.

For customs, RRA will prioritise importers dealing in high-risk commodities, those sourcing goods from high-risk countries or regions, cases flagged through customs risk management systems, and customs brokers.

High-risk commodities are products considered more vulnerable to tax evasion, under-declaration, smuggling, fraud, misclassification, or other forms of non-compliance. Such goods are identified based on factors including previous compliance records, difficulties in verifying value, frequent misdeclarations, and the potential for revenue losses.

Similarly, high-risk countries or regions of origin refer to locations from which imported goods are considered more likely to pose customs, tax, trade, or compliance risks.

"Building on our strong partnership with stakeholders and lessons learned from previous years, we will continue implementing strategies that promote voluntary compliance," Niwenshuti said.

Compliance measures for 2026/27

Among the key initiatives for the new fiscal year is closer engagement with taxpayers operating in high-risk sectors to address challenges affecting compliance.

RRA will also expand the use of modern risk management tools and advanced data analytics to detect compliance risks, increase Electronic Billing Machine (EBM) adoption among eligible taxpayers, and promote proper use of the system.

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The authority will continue working with partners to encourage consumers to request EBM invoices through the Tengamara and Tenga Promo initiatives.

It also plans to strengthen taxpayer education through media campaigns, seminars, and advisory visits highlighting tax obligations, available services, compliance risks, and ways to address them.

Other planned measures include identifying and registering eligible but unregistered taxpayers, conducting tax audits, recovering outstanding tax arrears, upgrading tax systems, and collaborating with other law enforcement agencies to combat tax-related crimes.

"Tax crimes are no different from any other crimes—they undermine our economy, weaken public services, and erode fairness within our society. Every citizen has a role to play in combating tax crimes by refraining from illegal activities, refusing to condone tax malpractices, and reporting anyone who acts outside the law," Niwenshuti said.

Abel Ntegano, Director General of Tax Policy at the Ministry of Finance and Economic Planning (MINECOFIN), said the newly established Tax Policy Committee and the recently approved Cabinet order on EBM use will further strengthen the country&039;s tax system.

"The committee will comprise representatives from the private sector, civil society organisations, and government institutions. It will meet quarterly to discuss tax issues and recommend improvements," he said.

Hajara Batamuliza, RRA Commissioner for Domestic Taxes, said the SORA digital platform will also help improve tax collection.

"The tax system has been integrated with other systems, including land administration, construction permits, Irembo, and mortgage platforms, enabling us to identify taxable properties and taxpayers. It also helps detect cases where property values have been understated, allowing us to notify those required to pay taxes," she said.

How the strategy performed in 2025/26

RRA said 43,243 additional taxpayers adopted Electronic Billing Machines during the 2025/26 fiscal year, improving VAT compliance and transaction traceability.

Taxable income grew by 22.9 per cent, up from 1.9 per cent in the previous fiscal year. Taxable employment income rose by 14.6 per cent, while Pay As You Earn (PAYE) revenue increased by 16 per cent.

Customs performance also improved, with the value of taxable imports rising by 29.6 per cent, boosting customs revenue.

As part of efforts to widen the tax base, RRA registered 126,282 new taxpayers, who contributed Rwf15.4 billion in revenue.

The authority also recovered Rwf277.1 billion in domestic tax arrears through strengthened enforcement.

Enhanced system controls and proactive follow-up on unsupported expenses improved Corporate Income Tax compliance, helping reduce under-reporting.

RRA completed 1,883 tax audits, resulting in additional tax assessments and payments worth Rwf9.3 billion.

Meanwhile, new tax policy measures generated Rwf286.7 billion, exceeding the Rwf259.2 billion target by reaching 110.6 per cent of the goal.

The VAT Reward Scheme, including Tengamara na TVA and Tenga Promo, also expanded significantly, with registered participants increasing from 74,964 in June 2025 to 1,096,931 by the end of June 2026.

Invoices requested through the scheme generated Rwf105.8 billion in VAT output, while Rwf4.2 billion in VAT rewards was paid to consumers during the fiscal year.

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RRA also stepped up investigations and anti-smuggling operations. It completed 163 investigations, resulting in tax assessments worth Rwf21.4 billion, while 1,542 anti-smuggling operations led to assessments totalling Rwf29 billion.

"We have intensified intelligence activities to identify products most targeted by smugglers. We have also strengthened inspections in warehouses, border points, and other strategic locations to close loopholes. We detect smuggled goods by identifying products invoiced through EBMs but lacking customs clearance," said Francis Musirikare, Assistant Commissioner for the Strategic Intelligence and Investigation Division.

Joint EBM compliance campaigns conducted with the Rwanda National Police in Kigali and five upcountry districts led to more than 12,000 taxpayers adopting EBMs and the recovery of Rwf3 billion in penalties.

Using data analytics, RRA also identified and blacklisted fictitious invoices, preventing fraudulent VAT claims estimated at Rwf28 billion.