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PRESS RELEASE: RRA announces revenue performance for July-December 2016
Rwanda Revenue Authority (RRA) collects Tax and Non-tax revenues for Central Government and Local Government Tax and Fees on behalf of Districts. Total Revenue collections for July-December 2016 (excluding local government tax and fees) was Rwf 514.9 billion against a target of Rwf 516.5 billion; which was a performance of 99.7%.
The Tax revenue collection for July-December 2016 was Rwf 507.2 billion against a set target of Rwf 509.8 billion which is an achievement of 99.5%, below the target by Rwf 2.6 billion. Total central government revenue collected by RRA during July-December 2016 grew by 8.4% in comparison with July-December 2015 collections.
In addition, non-tax revenues collected by RRA were Rwf 7.7 billion against a target of Rwf 6.7 billion, registering a surplus of Rwf 1.1 billion or 9.2% over the target.
Collections from Local Government Taxes and Fees (trading license, property tax, rental income tax and fees) for July-December 2016 amounted to Rwf 16.5 billion against a target of Rwf 17.8 billion which is an achievement of 92.7%.
Some measures that impacted on revenue performance
1. Taxpayer registration: Activities targeting broadening of the tax base through taxpayer registration were carried out focusing on specific sectors. These included commercial houses (for VAT on rental income), new registered taxpayers, meeting requirements for VAT registration, professional associations like architects, engineers, bailiffs, property valuers, etc.., for registration on CIT/PIT and VAT. As a result, the total number of taxpayers increased by 7,840 (5%) in six months from July to December 2016.
2. Strengthen sensitisation and use of EBM: By end December 2016, a total of 12,805 VAT registered taxpayers had Electronic Billing Machines, representing an increase of 12% (1,369) in a period of six months from 11,436 by end June 2016.
3. Conduct sensitization and education campaigns to various sectors and the general public to improve their understanding on tax matters and improve taxpayers’ compliance.
4. Closely monitor compliance of taxpayers, especially non filers and non payers and take immediate actions for non-compliance cases.
5. Enforcement of tax arrears: the total tax arrears collected during July-December 2016 was Rwf 19.5bn, representing 3.8% of total tax collection.
6. Online facilities such as e-tax that simplifies the process of filing and paying taxes.
Macroeconomic factors
- The fall in CIF of imports, especially non-EAC imports, negatively affected collections for customs VAT, customs excise, import duty and the infrastructure development levy.
- High inflation in food and non-alcoholic beverages negatively affected household consumption of goods and services for which domestic excise and VAT are applicable.