As part of the efforts geared at strengthening tax administration, and enhancing tax collection, the Rwanda Revenue Authority has increased sensitisation drives targeting new taxpayers. 

According to Drocelle Mukashyaka, the deputy commissioner for taxpayer services, they will educate new taxpayers on taxation matters, including the types of taxes they are supposed to pay, and the time of filing returns.

"Since they are new and know little about taxes, we want to teach them the basics of taxation,” she said recently at the tax body headquarters in Kimihurira, Kigali.

The training attracted about 700 new taxpayers from Gasabo District.

Mukashyaka said the initiative supports other approaches, including Radio and TV programmes, newspapers, and social media, which RRA is using to educate Rwandans on tax matters and their responsibility as citizens.

She added that such initiatives will ease tax administration, promote compliance and hence boost revenue collections over time.

RRA has registered 26,000 people who have income-generating activities from January to December 2015 as new taxpayers, according to the tax body.

Speaking during the training, the taxpayers appreciated the sensitisation campaign, but requested RRA to conduct more trainings for new taxpayers.

"We have gained a lot from the training, but we need more sensitisation to understand everything,” said Viateur Rukundo, a participant.

Emmy Sibomana, who represented a Kigali-based transport company, said most of the new taxpayers do not understand the types of taxes they are expected to pay.

He argued that taxpayers would not be defaulting if they were informed about the types of taxes they are supposed to pay.

The attendees said lack of knowledge is the main reason taxpayers default.

"Tax education can improve compliance as many taxpayers do not default knowingly. This is, partly, due to the fact that they are ignorant about the forms of taxes, the procedures one needs to go through to file their returns, or the attendant penalties for defaulters.

According to Martin Musemakweli, a shopkeeper, most business people are less informed and are ICT illiterate."Some people don’t pay taxes because they lack required skills,” Musemakweli said.

He added that most services, like tax declaration, are done online, saying few taxpayers are computer literate.

The participants requested RRA to set up information centres in different localities so that taxpayers can access tax information easily.

"The training was beneficial because we learnt new things we didn’t know before. But we would rather have an information center since such trainings are not so frequent and not everyone can attend,” Musemakweli said.

Meanwhile, taxpayers have been urged to embrace the practice of issuing customer invoices for any products bought using the electronic billing machines. It was reported recently that some crafty traders manipulate the machines to under declare taxes, or dodge paying them altogether.

business@newtimes.co.rw