Passengers likely to bear burden of RRA tax levy

Dear editor,Recently, the Rwanda Revenue Authority passed a new tax levy on commercial vehicles.

Sunday, August 24, 2008

Dear editor,
Recently, the Rwanda Revenue Authority passed a new tax levy on commercial vehicles.

It is reported that the changes were timely after the RRA received complaints of unfairness with its previous system of charging levy according to the type of car.

The changes were said to be time saving and cost effective by the commissioner in a story published in the New Times edition of the 22nd july.

Nevertheless, indirectly, they have just inflated the profit estimations thus a higher tax burden.

The payment time-frame has been changed to quarterly or annually.

They say they have erased the pressures of a fine of frw100, 000 on failure to pay on time.

However, the mentioned positives seem not to have taken into account the likelihood of the increased tax burden being pushed on to the passenger, in the case of public transport users.

The RRA should consider the scarcity of public cars. And how we wait for more private and external investors’ to invest in this sector to ease the morning joint aches as we wait for taxis to get to our work places on time.

Does the RRA know how we scramble for space in taxis?
With less competition in the public transport sector, it is obvious that the fares will shoot up as the commercial vehicle owners make an effort to dodge the tax increment.

KIMIRONKO