Tax cuts will make a huge difference

Editor, I would like to say that Ben Kagarama, the Commissioner General of Rwanda Revenue Authority (RRA) and his colleagues, are beginning to talk like economists.

Monday, October 15, 2012

Editor,I would like to say that Ben Kagarama, the Commissioner General of Rwanda Revenue Authority (RRA) and his colleagues, are beginning to talk like economists.  But the Private Sector Federation, Local Government, Rwanda Development Board, and the Ministry of Trade and Industry, please get together and comprehensively address the small businesses’ growth and expansion now that you realise they form 98 per cent registered businesses.Specifically come up with policies that enable small businesses to save, invest and expand. Engage and educate them what profit is and what disposable income is.Enable them to know when they are making or losing money and when they should make what decision. Many simply do their best but they could do better.Money is spent through fixed costs but also through many informal payments to local government, garbage collection and security all the way to wedding contributions every Saturday and the tithe every Sunday.For each small business that collapses and disappears, as an economy, we lose a purchaser of airtime, electricity, commercial loans, food, stationery, medicines, clothing, beer, water, transport, building materials, labour, etc.I’m sure with the latest efforts, businesses, especially SMEs, will do much better than have been the case previously. Peter Gatsata