Businesses need more sensitisation on e-tax payment – PSF

Rwanda Revenue Authority (RRA) needs to step up sensitisation about e-tax payment system to help improve revenue collection, the head of Private Sector Federation (PSF), Western Province, has said.

Monday, August 11, 2014

Rwanda Revenue Authority (RRA) needs to step up sensitisation about e-tax payment system to help improve revenue collection, the head of Private Sector Federation (PSF), Western Province, has said.

Speaking during the provincial Taxpayers’ Day in Rubavu District, Paul Gatare said training taxpayers on e-taxation would significantly increase compliance.

"E-filing and e-payment have eased the process of paying our duties. RRA has also opened offices in all districts which have helped us pay our dues in time. 

However, we need more training on use of e-taxing procedures as well as Electronic Billing Machines (EBMs),” Gatare said on Friday.

The event was characterised by a parade by public and private institutions, with marchers carrying placards that declared their commitment to meeting their tax obligations.

The Minister for Defence, James Kabarebe, said paying taxes will help the country end dependence on foreign aid. "This day was initiated to remind the public of the role of taxes in national development. It is the only way through which the country will wean itself off aid.”

Pascal Ruganintwali, RRA deputy commissioner general and commissioner for corporate services, said more taxpayers had adopted e-taxation.

Currently, there are about 5,180 taxpayers using EBM’s out of 1,028 taxpayers that bought the machines last year.

"This is a great improvement; a sign that the public is steadily appreciating the essence of using technology to pay their dues. This has simplified revenue collection,” said Ruganintwali.

In the Western Province, of the 992 business operators who bought EBMs, only 470 use them effectively. The province has 14,388 registered businesses.

"It is clear that we still have many businesses who do not use the Electronic Billing Machine. Those remaining need to come on board as well,” added Ruganintwali.

The tax body collected Rwf758 billion in the last fiscal year, compared to Rwf651 billion in the 2012/2013 fiscal year – a record 16.6 per cent revenue increase.

Janvier Birahagwa emerged the best taxpayer at the provincial level and will be awarded during the National Taxpayers’ Day later this month.

He pays about Rwf100 million in taxes a month.

"It’s a privilege to contribute to national development. In developed countries, private sector plays a big role in national development and that is what we wish to do in Rwanda,” said Birahagwa.

The 13th Taxpayers' Day national celebrations, to be held under the theme: "Invoicing: A basis for taxation and a foundation for Bookkeeping", will be held on August 30 in Kayonza District, Eastern Province.

The Taxpayers’ Day is meant to showcase the contribution of taxpayers to national development.