Rwanda Revenue Authority (RRA) will only tax goods whose CIF value is Frw1million, a statement from the country’s tax body says.
The move to increase the threshold to Frw1 million from the previous Frw200,000 may see the volume of trade and the movement of goods increase.
But, the statement says the CIF value for a Customs simplified declaration will vary in accordance with the volume of cargo, manpower and infrastructure available at a given boarder post.
The new development comes at a time the business community have been complaining that high taxes and non-tariff barriers are slowing down business growth, in a country depending on imports.
A recent RRA top management meeting classified Gatuna, Rusumo, Kagitumba and Cyanika, as entry points to benefit from the increase Frw1 million increment.
The unsigned statement from RRA’s public relations desk reads in part:
“The above exercise is in line with providing quality and courteous services to taxpayers since their business is our concern and it will avoid the splitting of goods as it has always been done.”
Adding: “This is in line with trade facilitation along the different boarder posts of the country and responding to taxpayers’ need to increase the 126 bis threshold.”
Boarders like Gisenyi corniche, Aerogare Kanombe, Rusizi I, Rusizi II, Gisenyi poids lourds and Akanyaru haut the CIF value was increased from Frw200,000 to Frw500,000.
Whereas Buhita, Kabuhanga, Kibuye, Nshili,Akanyaru BAS, Rutete, Aerogare Kamembe, Rwempasha, Bugarama and Ruhwa their CIF value will remain at Frw200,000.
The statement says importers who will need to declare goods of Customs value more than the given CIF value, will be required to seek permission in writing from the Commissioner of Customs and Excise.
With this new tax, it is hopped it reduce the costs incurred by taxpayers while clearing their goods.
Some of the costs include: “Processing of transit documents to Kigali, reduce the time spent at MAGERWA and moving from boarder posts to Customs headquarters.”
Another advantage in this increment is that the issue of abusing this threshold by most taxpayers will be called stop.
“Most taxpayers were getting involved in hiring of other people’s Tax Identification Numbers (TIN) to make it easy for them to clear their goods without coming to the Customs headquarters in Kigali,” the statement alleges. Ends