Revenue protection unit recovers over Rwf156m from tax evaders, smugglers

About Rwf156m was recovered by the Rwanda National Police (RNP) revenue protection department from tax evaders and smugglers over the past three months, Superintendent Emmanuel Kalinda, the unit’s chief commanding officer, has said.

Tuesday, June 03, 2014

About Rwf156m was recovered by the Rwanda National Police (RNP) revenue protection department from tax evaders and smugglers over the past three months, Superintendent Emmanuel Kalinda, the unit’s chief commanding officer, has said.

Kalinda told Business Times that the unit and the Rwanda Revenue Authority (RRA) recovered about Rwf13m weekly from intercepted smuggled goods and undervalued products that entered the country over the period. 

The revenue protection department is attached to RRA. It is charged with detection and prevention of tax evasion and smuggling , as well as investigating related and other vices.

Kalinda said though the culprits use various illegal entry points, the unit has been able to apprehend them and ensure they pay all the taxes due to the government.

"Though our borders are porous, we work with the public to combat these vices,” he said.

He however added that cases of smuggling were decreasing, noting that it is only fraud which is still rampant, partly facilitated by technology.

Previously, they used to intercept many vehicles loaded with smuggled goods, but this is changing. 

"Presently, most of the culprits forge receipts and undervalue their merchandise to pay less taxes,” he added.

Kalinda said liquors, powdered milk, especially Nido, textiles, soap, salt and Salsa, a tomato paste, are some of the products that are mostly smuggled into the country.

He, however, noted that the unit sometimes visits countries where some commodities originate to study the prices so as identify which commodities are undervalued by importers.

Kalinda urged traders to always go through legal channels to avoid paying heavy fines or losing their merchandise.

He warned traders against tendencies of bribery and refusal to use electronic billing machines.

The e-billing machines help in automatically calculating value added tax (VAT) of items sold, as well as controlling sales and stock by processing and storing invoices.

Between 2007 and 2013, the revenue protection department has intercepted goods smuggled into the country worth over Rwf4b, with goods worth Rwf1.2b seized in 2012 alone.

The government fights smuggling because it undermines the local industry, discourages legal imports and affects revenue collection, besides compromising public health.