Minister of Defence Juvénal Marizamunda has issued a stern warning against smuggling various products into the country, emphasizing that it not only obstructs development but also poses a significant threat to national security.

The Minister made the remarks on October 28, in Musanze district, during a taxpayer appreciation event aimed at recognizing the most compliant taxpayers in Northern Province, and presenting achievements funded by the collected tax revenues. During the event, Marizamunda highlighted the importance of combatting smuggling.

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Minister Marizamunda congratulated the awardees and expressed hope that this recognition would motivate them to continue working diligently and paying their taxes. He urged all business professionals to consistently provide EBM receipts to their clients and encouraged customers to request EBM receipts when making purchases.

Marizamunda highlighted the unique challenges faced by Northern Province, including smuggling, and called upon relevant institutions to collaborate in the fight against it.

He stated: "Smuggling is a hindrance to national development as it allows products to enter the country without paying taxes and can lead to substandard products that harm our people and pose a threat to national security."

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He encouraged businesses, especially in the hospitality sector, not to sell smuggled alcoholic beverages, as they can harm the industry and result in heavy losses. He stressed the importance of tax compliance in supporting Rwanda&039;s financial self-reliance and pointed out that unpaid taxes represent a loss to every Rwandan and the country's development efforts.

The Rwanda Revenue Authority (RRA) Commissioner General, Pascal Bizimana Ruganintwali, outlined key reforms aimed at improving the country's taxation system. These reforms encompass institutional restructuring, digital transformation, and tax law amendments, which have led to significant enhancements in service delivery.

Ruganintwali explained: "This resulted in a significant improvement in our service delivery."

He discussed the benefits of digital transformation, including the automation of several services such as online motor vehicle ownership transfer. These improvements have resulted in quicker services, such as the issuance of Tax Clearance Certificates (TCC) in under five minutes and automatic classification of Taxpayer Identification Numbers (TINs) as dormant after a year of not declaring VAT or Personal Income Tax, or two years for income tax.

RRA has also introduced a TIN protection system upon several requests from businesses. Additionally, the digital transformation has reduced the appeal period from 90 days to a range of 15-30 days.

Ruganintwali emphasized the government's efforts to reduce the tax burden, including measures such as waiving VAT on locally produced or imported rice and maize flour, reducing corporate income tax from 30 per cent to 28 per cent, with a target of reaching 20 per cent. Several significant changes have also been made to immovable property tax, and duties paid on different services in local government have been eliminated.

"We encourage all businesses to use the electronic invoicing system (EBM) to help collect more VAT and income tax, thus increasing government revenue," he added.

Donatha Mukanyarwaya, the Chairperson of the Private Sector Federation in Northern Province, commended the reforms initiated by RRA and the support of local leaders for businesses. She stressed the importance of businesses following RRA guidelines to enhance technology literacy and the role of tax education in achieving tax compliance.

The 21st taxpayers' appreciation event is celebrated under the theme "Request for EBM Receipt to Build Rwanda." Eight taxpayers were recognized, including one from each of the five districts and three from other categories, based on their timely payment of taxes, lack of involvement in tax fraud, accurate reporting of EBM invoices, absence of outstanding duties or tax arrears, and their significant contribution to tax revenue.

The best taxpayer was Gorilla Nest Lodge and Golf Resort, from Musanze district, which paid over Rwf4.2 billion in taxes, making it the outstanding taxpayer in the entire Province.

Other awardees included Rupiya Mathias (Gicumbi), Ihangane Project (Gakenke), Highland Resort (Rulindo), and Haguruka Alpha (Burera).

In decentralized taxes, Maganya Omari from Musanze was awarded after paying Rwf20.3 million in taxes. Kamanga was recognized as the Best EBM user for delivering 59,012 EBM invoices, with a total value of Rwf8.1 billion.

The best consumer award, given to someone who requested numerous EBM receipts while purchasing, went to Sharom Tindimwebwa who received 119 receipts worth Rwf128,170.

These events will culminate into the National Taxpayer Appreciation Day, scheduled to take place on November 10, at Intare Conference Arena.