Rwanda Revenue Authority (RRA) on Wednesday, November 4, announced that it collected Rwf371.5 billion in taxes in the first quarter of the 2020/2021 fiscal year, surpassing its target despite the Covid-19 pandemic.

The achievement represents 105.8 percent of the 351.2 billion target that had earlier been set. The increase in monetary terms is equivalent to Rwf20.3 billion.

Putting into consideration that the operations of many taxpayers’ businesses and workplaces were severely affected by the Covid-19 pandemic, RRA’s achievement is a milestone, officials said.

According to RRA Commissioner General Pascal Bizimana Ruganintwali, the accomplishment was a result of an increase in VAT (value-added tax) collected.

"We have put much efforts into technology, for instance, ensuring the use of EBM (electronic billing machine) by taxpayers, especially on imported commodities and industries. This limited tax evasion.”

"Much of the achievement is also credited to the increasing compliance. The VAT also increased by the tender offered by the government for the ongoing construction of classrooms across the country,” he explained.

In June, the Ministry of Education began implementing a plan that will see 22,505 classrooms completed in all 30 districts of the country.

Rugenintwali also noted that technology helped the tax collection body to detect people who evade taxes and took measures accordingly, including punishing them.

Another key reason for the achievement was noted by Robert Bafakulera, the Chairperson of the Private Sector Federation PSF, who explained that many businesses so far resumed operation.

"As we speak, many businesses in the private sector have resumed operation, which means that they pay taxes. We are hopeful that those that have not yet reopened will be given a green light in the near future because we are in touch with the government in this regard,” he said.

The phasing out of the lockdown began in May this year, allowing many businesses such as hotels and restaurants among many others to resume operation with adherence to Covid-19 preventive measures.

Taxpayers Appreciation Month

Meanwhile, RRA on Wednesday launched the Taxpayer’s Appreciation Month.

The month among others seeks to recognize the most compliant taxpayers country-wide, and create more public’s awareness in regards to the importance of timely paying of tax.

This year’s Taxpayers Appreciation Month will be held under the theme "support business for economic resilience”.

The month-long outreach activities under the Taxpayers Appreciation Month will include tax dialogues at the provincial level, school quiz competition for high school students among others.

It will culminate in a national event on November 20.