RRA targets SMEs for taxation

Rwanda Revenue Authority (RRA), together with the World Bank Group and Kigali City have launched a massive sensitisation campaign, targeting small and medium enterprises (SMEs) as part of efforts to raise tax compliance.

Sunday, February 26, 2012
Vendors in a Kigali market. The campaign is part of efforts to increase tax compliance among such traders. The New Times/ File.

Rwanda Revenue Authority (RRA) together with the World Bank Group and Kigali City have launched a massive sensitisation campaign, targeting small and medium enterprises (SMEs) as part of efforts to raise tax compliance.A study by the Institute of Policy Analysis and Research (IPAR) indicates the SMEs currently generate Rwf4.9 billion in annual tax revenue, which is way below their capacity.Of the estimated 72,000 SMEs in the country, only 25,000 are registered, of which a mere 24 percent meet their tax obligation regularly.The tax authority expects to use the campaign, themed: "SME’s development for better taxation” as a forum to bring on board micro taxpayers into the tax net and raise the country’s domestic revenues.Richard Tusabe, the Deputy Commissioner General of RRA, underscored that promoting and educating small businesses about tax compliance will greatly address economic imbalances."Through the campaign we can strongly address the existing challenges that are faced by Rwandan SMEs by engaging them in collective dialogues,” Tusabe said last week."RRA put in place facilities to promote SMEs, including tax consultants, opening up bloc management offices within Kigali City, quarterly declaration of Value Added Tax (VAT), e-filling and e-payment, aimed at reducing costs faced by taxpayers in this category.”During the tax education campaigns, taxpayers will be given a platform to raise concerns regarding taxation and put forward proposals for improvement.