Rwanda Revenue Authority (RRA) and officials from the Eastern Province Wednesday resolved to work closely to minimise cases of tax evasion in the province. This was during an evaluation meeting held in Rwamagana district.
Jean Marie Vianney Gakwerere, RRA coordinator in the province, said overall tax collection is low in districts where smuggling is common and where businesspersons evade taxes.
“Kabarondo and Kayonza are big business centres attracting even traders from the capital city, yet they don’t have any industries. There is only one reason, they evade taxes and smuggle goods in the country,” he said.
“We have businesspersons buying goods in Uganda, pay taxes at the border and later evade income tax and VAT. Others have resorted to outright smuggling; taking advantage of the porous borders…this is a big handicap.”
Richard Dada, another RRA official, said a data base will have to be updated regularly to assist in addressing tax collection flaws.
Provincial Governor, Dr. Ephraim Kabaija, reaffirmed the need to address tax collection flaws, noting that smuggling in the Province has reached its peak.
“Some of you have handled smuggling with kids’ gloves, yet it drains our economy. Revenues would triple if we had no such cases. We must stand firm and win the war on smuggling,” he said.
RRA collected over Rwf2.3 billion in Eastern Province this year.