Rwanda Revenue Authority (RRA) has said that last year it recovered Rwf3.8 million that it had lost in illicit trade.

"The problem is not smuggling or tax evasion but the concept itself. It is something we need to fight,” Mary Baine, RRA’s Commissioner General explained on Monday in a separate interview at the official launch of the East Africa Community (EAC) Customs Union in Rwanda.

According to information from the Revenue Protection Department (RPD), the illegal acts are attributed to the rapid growth of the informal sector where players seek for ways of maximising profits. The RPD is responsible for minimising tax losses.

The authority says that these acts also create unfavourable competition.

The structural and administrative changes in RRA have in the recent years increased the recovery of revenues from illicit acts.

Records show that from 2003 to June 2004 a total of 1300 cases of smuggling and tax evasion were discovered, leading to a tax revenue recovery of Rwf2.6 billion.

Baine said that the recent acquisition of two speed boats will facilitate its anti-smuggling campaign along Lake Kivu.

"We expect more recoveries of revenues,” she said.

The high speed vessels with a radar detection and Global Positioning System (GPS) — satellite navigation system are based in Rubavu District along the Gisenyi-Goma border and at the Rwanda Defence Forces (RDF) Marine base in Kibuye. Both boats are estimated at over Rwf600 million.

Over the years, the treasury has been losing hundreds of millions to racket smugglers who operate along Lake Kivu.

The tax authority monthly records show that cartons of liquor, cigarettes and powdered milk are some of the major smuggled goods.

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