SMEs ‘ignorant about taxation’

Lack of tax information remains a serious problem for small and medium taxpayers (SMEs) in Gicumbi District, where some of them are fined after ignorantly defaulting on meeting their tax obligation.

Wednesday, March 21, 2012

Lack of tax information remains a serious problem for small and medium taxpayers (SMEs) in Gicumbi District, where some of them are fined after ignorantly defaulting on meeting their tax obligation.Augustin Munyakazi, the chairperson Private Sector Federation in Gicumbi District, said this at a tax education meeting in the area on Monday.The ongoing sensitisation was jointly organised by Rwanda Revenue Authority (RRA), and the International Finance Corporation."Most (SMEs) are faced with the problem of lack of tax information: there is need to work jointly so as to bridge this knowledge gap,” Munyakazi said.Other challenges faced by SMEs which were highlighted include; illiteracy, lack of accounting skills, few working hours, and distinction between decentralised taxes from those administered by RRA.Jean Marie Vianey Gakwerere, the head of taxpayer education division in RRA, said they will continue to conduct tax education in collaboration with local authorities.He advised participants to register with RRA and pay their taxes on time to avoid penalties.The tax education aims at increasing tax awareness, tax base and revenue collection."More tax sensitisation programmes will be conducted to reach the grassroots such that all SMEs are reached,” he said.