Refer to the article, “RRA takes over rent collection at Kigali market over tax arrears” (The New Times, October 9). This is one of the measures that could help recover unpaid taxes, but not necessarily the best.
RRA should put in place strategies to recover tax arrears in the same fiscal period. Waiting for unpaid taxes to accumulate means many companies will hardly afford to pay back and that has serious implications on the economy and the companies in question.
Now with the RRA’s decision to collect taxes from the defaulting firms, banks are likely to come forward and claim their monthly deposits since it’s possible that some of the buildings were given as collateral. Or banks may choose to auction the buildings in question and, as a consequence, RRA loses its money while the business would also close. Who will benefit from this? I don’t think anyone actually benefits.