Rwanda Revenue Authority (RRA) has set a target of at least Rwf 533.8 billion in tax revenues during the current 2011-2012 fiscal year.
The Commissioner General of RRA, Ben Kagarama, said this yesterday during the Tax Advisory Council of the City of Kigali which took place at the city’s head offices.
According to Kagarama, during the last fiscal year, the tax body had set a target of Rwf 458 billion, which they surpassed by collecting Rwf 491 billion.
“RRA has continued to grow from strength to strength but we still have a long way to go...which is why I encourage city authorities to put in place stringent mechanisms that will enable an increase in the tax base in the city,” Kagarama said.
He urged the city management to work closely with local leaders in improving the taxpayers’ compliance.
Kagarama noted that currently, RRA has over 66,000 registered taxpayers including 323 large taxpayers, while the rest are small and medium enterprises (SMEs).
Among the challenges Kagarama cited were mainly tax evasion, giving an example of taxpayers registered for Valued Added Tax (VAT) but who fail to issue VAT invoices.
“RRA is planning to introduce electronic devices that can help to monitor taxpayers’ sales by sending all transactions directly to the RRA server,” Kagarama added.
The RRA chief further noted that some traders use forged documents by under-declaring their taxes through a reduction in turnover.
He urged the city to ensure a strong partnership with taxpayers around the city, which he said is a major tool for promotion of a sense of responsibility.
Kigali City Mayor, Fidele Ndayisaba, called on those present to play a key advocacy role in boosting tax revenues in their respective jurisdictions.
He further noted that tax collectors in the city lack the basic skills, saying that they have intensified capacity building among the collectors.