Attributes increment to extension of working hours

Rwanda Revenue Authority has underlined that 30 percent of customs duties collected from September to December 2008 are attributed to the extension of working hours from 8 hours to 16 hours.

Reviewing the statistics registered within a period of four months since the operation of working 16 hrs began, of the Rwf 50.469 billion collected in the 4th quarter of 2008, 30 percent was collected during extended working hours.

"The change from 8 hours to 16 hours is one of Rwanda’s numerous efforts towards effective implementation of 24 hour border access as agreed upon with the East African Community” Gerald Nkusi Mukubu, the Director for Tax Payer Services said.

Further statistics from the stations used during the pilot phase which include Gatuna, Gikondo, Gatsata, Kabuye and at Kigali International Airport indicate a positive trend both in volume and monetary terms.

"Out of 49,406 transactions processed by Customs in a period of four months 32 percent of the transactions were processed between 4:00 pm and 10:pm ( the non traditional hours),” added Mukubu.

As part of its continued preparations for the 24 hour of border services, the RRA Customs Services began working on Saturdays from 8:00 am to 1:00 pm

In a related development, the revenue body is training its staff on the EAC Customs Management Act to enable them grasp the provisions in the Act.

"According to this act, taxpayers are more favoured because customs duties rates are reduced from 30% to 25%,” Mukubu emphasized.

In addition to paying customs and taxes based on FOB (free on board) first port of entry to the East African Community, for instance Mombasa or Dar es Salaam.

"The advantage of this is that, it reduces the transport element that has been a basis for paying custom duties & taxes,” he added.

The main objective of working for extended hours, according to Mukubu is to enhance trade facilitation by reducing the waiting time for cargo clearance.

"This will lead to increase in the volume of trade resulting from increased turnaround time as well as reduce delays and congestion at the border posts,” Mukubu added.

According to RRA, the intended benefits of extending working hours are being realized. Trade facilitation has been enhanced.

Turnaround time has increased leading to increase in the level of transactions processed hence revenues have also increased.

The only challenge is to encourage importers and other stakeholders to optimally utilize this opportunity.

Ends