Tax compliance can only grow by eliminating bottlenecks

Throughout the whole of this month, Rwanda Revenue Authority (RRA) will be conducting activities to mark this year’s Taxpayers’ Day, scheduled for August 30. It will be celebrating exemplary taxpayers; individuals and firms that promote compliance as far as taxation is concerned. Taxpayers, RRA and policy-makers should use the period to reflect on how to ease tax administration and collection for all parties involved. The exercise’s most crucial goal will be to bring on board reluctant taxpayers, but that can only be achieved by creating awareness on the key role taxes play in national development. Those who pay grudgingly should be made to understand that paying taxes is a noble and patriotic duty that serves the common good of everyone. So, facing the taxman should not be reason for aversion but should be embraced. The tax body should also use the period to study some of its policies to gauge their relevance and whether they achieve the desired results. But most importantly, it should continue coming up with innovative and easier means for the population to fulfill its obligations. Otherwise, as RRA has learnt in the past, tedious and bureaucratic processes only go to discourage willing taxpayers who might evade it if they considered it time wasting. That is one of the major loopholes that have to be plugged. The country’s ambitions and vision to build a self-reliant economy will only be achieved if all stakeholders are brought on board and a sense of ownership instilled in them. That is where RRA steps in as an important piece on the economic chessboard.

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Tax compliance can only grow by eliminating bottlenecks