AT LEAST 18 businesses will this week be closed down over tax defaulting, Rwanda Revenue Authority (RRA) has said.
The crackdown, according to Aimable Kayigi, the commissioner in charge of domestic taxes at RRA, seeks to hold tax defaulters accountable and increase tax compliance.
VIDEO: Tax defaulters escape RRA’s crackdown. Source: The New Times/YouTube
The campaign is also expected to help RRA recover more than Rwf500 million in tax arrears companies owe the tax body at least by the end of the week.
Five businesses were yesterday closed down for non-compliance in Kigali. According to RRA, the exercise is expected to cover all tax defaulters.
They include Advanced Capital Rwanda Ltd in Gikondo, Forest Volcanoes Gorillas Ltd in Remera, Hotel Tech in Kabeza, REC Company Ltd in Kinamba, and SIECO 2020 Ltd in the city centre.
The revenue body is currently looking at achieving 100 per cent tax compliance to be able to meet its revenue collections targets for the Financial Year 2015/16.
RRA collected Rwf871.4 billion in both tax and non-tax revenues during the Financial Year 2014/15, representing a 12.6 per cent increase compared to the previous financial year.
But to be able to meet its targets, the tax collector has no choice but to crack the whip on all tax defaulters while improving on the tax base.
The government is relying its domestic resources to finance up to 66 per cent of the Rwf1.768 trillion National Budget for 2015/16 financial year.
This means that Rwf1.174 trillion must be sourced domestically, which puts more pressure on RRA to mobilise and collect this revenue.
According to RRA Commissioner General Richard Tusabe, the tax revenue targets for the Financial Year 2015/16 is Rwf972.27 billion, which includes tax revenue equivalent to Rwf949.19 billion and the local government tax of Rwf23.08 billion.
In addition, the non-tax revenue target for the current finacial year is Rwf45.4 billion composed of non-tax revenue of Rwf13.0 billion and local government fees totalling to Rwf32.4 billion.
And, to achieve these targets, RRA is planning to continue taxpayer registration process, enhance electronic billing machines monitoring systems and continue enforcing the payment of tax arrears among many other measures.
Drocelle Mukashyaka, the deputy commissioner for taxpayer services at RRA, recently said the revenue body is counting on this particular technology, among other strategies, to be able to meet its targets this financial year.