Taxes will contribute 20.4% to GDP by 2024 – Prime Minister

Prime Minister Edouard Ngirente said more efforts are needed in tax collection so that taxes contribute 20.4 per cent to national Gross Domestic Product (GDP) by 2024. / Craish Bahizi

Prime Minister Edouard Ngirente has said that more efforts are needed in tax collection so that taxes contribute 20.4 per cent to national Gross Domestic Product (GDP) by 2024. He said that the target is set under National Strategic Transformation (NST1).

He was speaking on Friday during the taxpayers’ appreciation day at Intare Conference Arena.

 

In the 2018/19 fiscal year, taxes contributed 16.3 per cent from 11.3 per cent in the past ten years. 

 

“This is an occasion to celebrate economic development achievements thanks to the contribution of taxes. We thank Rwanda Revenue Authority for exceeding the target in terms of tax collection for 2018/19 fiscal year,” he said.

 

He said taxes will increase by also promoting locally produced products and exports development to ensure self-reliance under vision 2050.

“We urge taxpayers not to evade taxes. We urge them to use EBMs for efficient tax collection,” he said adding that government is going to assess all challenges expressed by taxpayers.

Uzziel Ndagijimana, the Minister of Finance and Economic Planning said that taxes contributed 65.6 per cent to the 2018/2019 budget and that the target will increase to 68.3 per cent in the 2019/2020 fiscal year considering the budget of Rwf2. 876 billion.

In the 2018/19 fiscal year, Rwanda Revenue Authority collected Rwf1,422 billion surpassing the target of Rwf1,392 billion.

“This means an increase of Rwf30 billion equaling 2.2 per cent,” Pascal Bizimana Ruganintwali, RRA Commissioner General said.

He added that the challenges still persisting include people who do not register their income generating businesses, evading the use of EBMs invoices, smuggling and others.

“This fiscal year, we have set a target of collecting Rwf1.579 billion. We continue campaigns to educate taxpayers, reform tax laws and enforce the use of EBMs and ICT in service delivery,” he said.

He further added that campaigns have started to enforce the use of EBM Version 2, the software which is supposed to replace the Electronic Billing Machines.

Robert Bapfakurera, the chairman of Private Sector Federation lauded the initiative to award best taxpayers.

“It has been a good culture to organize this day. The Private Sector Federation plays a big role in national development. We pledge to perform better through domestic market and international market. We commit to contribute to Made-In- Rwanda to reduce trade deficit,” he said.

At least 36 taxpayers mainly from industries, bank and projects were awarded. 

The recognition was based on their performance in paying taxes in 2018/19.

The selection criteria looked at those who pay on time and a big amounts of taxes, those who do not commit fraud, and those who use EBM, among others.

The best tax payers include; B&G General Supply Ltd  from Bugesera district,  Shapoorji Pallonji and Company Private Limited  from Gisagara district, Mulindi Factory Company Limited  in Gicumbi district,  Centre d’Accueil St François Xavier in Rubavu District and Randa Construction Ltd.

They also include Jali Investment, Crimson Logic Ltd, Vizor International Ltd and Africa Lubrificant Manufacturing Company Ltd.

The small and medium taxpayers awarded are; Shema Power Lake Kivu Ltd, Afriprecast Ltd and Pfunda Tea Company.

Big tax payers are Societe Petroliere Ltd, MTN Rwandacell, Skol Brewery Rwanda and I&M Bank Rwanda Plc.

Taxpayers who use the EBMs well include Hotel Chez Lando, Soreco Ltd (Alimentation La Gardienne),  Carrefour Supermarket and  Sawa Citi Ltd.

The best tax payers with Made in Rwanda initiative are Imana Steel Rwanda Ltd, Ruliba Clays Ltd and Minimex Ltd.

Bralirwa, Park Inn Kigali by Radisson, MM & RJD Company Ltd were announced as the best tax payers.

Rusirare Jacques, Bank of Kigali, National Police and Defense forces emerged as best tax payers who have received the awards several times. 

editor@newtimesrwanda.com

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