Approximately 6,000 business owners in Rubavu District have been found violating Electronic Billing Machines (EBMs), risking the closure of their businesses, authorities revealed.

This issue was raised at a district advisory council meeting on December 29, with members repeatedly questioning why some business owners still do not comply with using EBMs.

According to official data from the district, there are around 10,488 businesses in Rubavu, a tourism gateway and business hub.

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Ignace Kabano Habimana, Chairperson of Rubavu District’s advisory council, recommended that the authorities rapidly reach out and mobilise business owners on EBM usage.

"Someone who doesn’t use EBM does not pay tax, let’s mobilise our business people on its usage,” he said.

On the other hand, Kabano suggested that the district should officially warn business owners or else close their businesses if they do not comply.

He added: "You should officially recommend them to use EBMs or else close their businesses. It’s a responsibility for them to use it as per the law.”

The District Executive Secretary, Olivier Ruhamyambuga, also revealed that the refusal to use EBMs is a challenge even in large businesses in Rubavu.

"We have found some businesses that don’t use EBMs, in town, while they are making millions a night,” Ruhamyambuga added.

According to the Chairperson of the Private Sector Federation for Rubavu District, Dieudonné Mabete, business owners are on the right track and mobilisation continues for those whose mind-set on EBM is still lagging.

"We are not on the wrong path for EBMs usage, it’s a process and we are mobilising our business people to increase the number,” he stated.

Responding to the issue, Déogratias Nzabonimpa, Vice Mayor in Charge of Economic Development, Rubavu District, stressed that more reinforcement and mobilisation are still needed.

"There is no big problem, PSF [Private Sector Federation] works better, it’s a process, and taxpayers are doing well. It’s a matter of reinforcement,” he added.

Businesspeople, who spoke to The New Times under the condition of anonymity, said that the lack of sufficient skills in using electronic machines and operating small businesses are challenges they face in complying with EBM usage.

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Speaking to The New Times, Rwiririza Gashango, Director for the Compliance Monitoring Unit at Rwanda Revenue Authority (RRA), urged business owners to obey tax law since "EBM is obtained for free of charge” and recommended those without it to get it at RRA.

"There are punishments for those running a business without it,” he added.

Electronic Billing Machines (EBMs) enable revenue authorities to monitor formal business transactions and thus offer the potential to improve VAT compliance.