Projections for domestic taxes in 2012 will be Frw439 billion, Mary Baine, Rwanda Revenue Authority (RRA) Commissioner General has said. Since its establishment in 1998, the tax body’s collections have been increasing.

"RRA therefore has progressively revolved from its initial target of Frw 51 billion to 251 billion in 2007,”Baine told the visiting German delegation on Tuesday.

The delegation headed by the German Parliamentary State Secretary in the Ministry of Economic Affairs, Karin Kortman was in the country to assess how their development aid has been used by the Rwandan government. 

The target will be realised, because the tax base is projected to grow as a result of the increase in tax payers’ compliance. The tax body has also enhanced relationships with the taxpayers.

According to Baine, trade is also going to be more facilitated as the tax body harmonises its systems with those of the East African Community Customs Union.

"Joining economic blocs such as the Common Market for Eastern and Southern Africa (COMESA) and the East African Community (EAC) may bring about revenue losses especially as a result of application of external tariffs, elimination of internal tariffs on Tanzania, changes in computation of duties as well as the stiff competition from strong and mature industries,” Baine said in her presentation.

She was also optimistic that in the long run the integration will bring about positive impacts such as a wider market of about 120 million people. These impacts include reduced prices of consumer goods, better skills and cooperation in cross border issues.

Baine noted further that her vision is to fully fund the national budget where currently the revenue collections now contribute to 50 per cent as compared to 16 per cent in 1998 to the national budget.

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