Rwanda recognizes tax payers on appreciation day

Rwanda's Revenue Authority recently held its taxpayer appreciation day, a celebration in recognition of exemplary taxpayers who have contributed to the nation. This event follows the taxman's successful target achievement of collecting 55.6% of the national budget for the fiscal year 2016-2017. Richard Toussave, the Commissioner General at the Rwanda Revenue Authority, sheds light on the tax landscape in Rwanda and the strategies in place to ensure continued growth and compliance. Toussave highlights the fact that over 70% of taxes in Rwanda are voluntarily paid, showcasing a high level of compliance and civic responsibility among the citizens. The country has also implemented revisions to the tax regime, offering incentives such as tax holidays and investment packages to attract foreign direct investment and stimulate economic growth. These strategic policies aim to position Rwanda as a competitive destination for investors and drive sustained economic expansion. One of the key challenges facing tax authorities is the presence of multinational corporations using loopholes to avoid paying taxes. Toussave emphasizes Rwanda's focus on strengthening international tax laws and transfer pricing regulations to combat tax evasion. The authority is investing in enhancing the skills and capacity of its staff while considering outsourcing audits to external experts to improve revenue collection efficiency. In addressing specific cases like the MTN tax dispute from 2015, Toussave assures a commitment to resolving issues amicably while upholding tax laws and ensuring compliance. The authority aims to foster trust and transparency in tax dealings with corporations to enhance revenue generation and fair contribution to the national budget. To meet the ambitious target of raising 55% of the national budget, the Rwanda Revenue Authority plans to leverage economic growth, improve tax administration efficiency, expand the tax base, and enhance compliance through technology and taxpayer education. By fostering a conducive business environment and promoting tax compliance, the authority aims to achieve its revenue collection goal for the fiscal year. The recognition of taxpayers on appreciation day serves as a testament to the partnership between the government and citizens in building a sustainable revenue system. Through continued collaboration and innovation, Rwanda aims to uphold a robust tax framework that supports economic development and financial stability.