Over the last three year Revenue Authority (RRA) has been promoting e-tax payment mechanisms, a move that is aimed at tightening loopholes in tax administration to boost revenue collections. 

The approach has started paying dividends with total revenue collections for the first six months of this fiscal year increasing by over 102.1 per cent to Rwf470.6 billion against a target of Rwf460.3 billion.

Tax revenue collections for the July-December 2015 period were Rwf463.5 billion compared to Rwf455.0 billion projected. Today, taxpayers can file the returns using the Internet on the tax body’s website where they get a reference number and go pay in the bank. Rwandans can also pay for non-tax government services, like passport or ID fees, using the Internet on Irembo.com.

However, in a bid to further ease access to electronic payment facilities, RRA contracted a private firm, MobiCash, to collect both fiscal and non-fiscal revenues on its behalf in May last year, a move taxpayers and experts say has greatly eased filing of tax returns.

Venuste Ufitinema from Rulindo District in Northern Province, says he used to travel a long distance to access Internet services to file his quarterly local tax returns, and get a reference number that he would use to pay the taxes in the bank.

"On days when I was filing my tax returns, I always suspended farming activities,” he says.

Ufitinema pays district property tax for a plot of land. He says now he is able to file tax returns, get a reference number from the system and pays the tax without having to go to the bank, thanks to MobiCash platform used by the local Umurenge SACCOs.

"Now the whole process takes about one hour at the Izuba SACCO to process my reference number and pay the tax using MobiCash,” he says.

Ufitinema adds that this has helped him save time and transport money to concentrate on his farming. "I don’t have to go out of the sector to pay the tax as was the case before,” he says.

Sam Nsengimana, an accountant at Ijabo SACCO in Kicukiro District, says it enables people pay local taxes and other RRA fees with ease, adding that the facility has promoted payment of taxes, and enabled SACCOs to earn extra cash as MobiCash agents.

"Using e–payment platforms has eased tax collection…We have taken advantage of this to reach more people, especially the financially excluded in the villages,” he says.

Pascal Nyagahene, the MobiCash Rwanda chief, says the firm works with over 400 agents and sector credit and savings co-operatives (Umurenge SACCOs), which has brought RRA services to the grassroots taxpayers countrywide.

"To date, close to Rwf800 million has been collected by RRA using the MobiCash platform,” he said on Wednesday.

Recently, RRA said working with private firms has helped them cut administration costs incurred in collecting taxes, which were up to 40 per cent previously.

Taxpayers can also use their mobile money accounts and banks to file returns, but this involves one visiting the RRA website first to get a reference number before they can pay the due taxes.

editorial@newtimes.co.rw