RRA takes over rent collection at Kigali market over tax arrears

Marie Merci Modern Market in Kigali and several other surrounding businesses will now operate under the watchful eye of Rwanda Revenue Authority (RRA), until longstanding tax arrears, amounting to Rwf220 million are fully paid. The market, located along the Giporoso-Kabeza road, is owned by a local businessman, Louis Aboyezuyantije. He also owns land and properties adjacent to the market, which he rents out to several businesses including a night club, bar, as well as several kiosks and dispensaries. The businessman appeared on the list of tax defaulters published in the media early September, by RRA, which named 108 individuals and businesses with tax arrears amounting to Rwf8 billion. “We have officially agreed with those using Kabeza Market to start channeling their monthly rent fees to our accounts until the money is recovered,” Patrick Gayawira, RRA’s Chief Tax Collector, said in an interview yesterday. “For close to three years now, Aboyezuyantije has not paid any taxes and has not approached us to explain why. Even when his name was published among those with long-standing tax arrears, we tried to contact him in vain. That is why we decided to go forward with this action,” he added. Several people selling foodstuff at the market told this paper that Aboyezuyantije had not been seen for a very long time, with some concluding that he was probably out of the country. Rent documents indicated that the market pays Rwf15 million per month, while adjoining businesses pay Rwf1 million per month. “This is the first of many operations we are going to conduct until we recover all the money owed by tax defaulters. Good enough many of them approached us when they saw their names in the media and have showed a plan on how they intend to clear their debts,” Gayawira said. “Those who continue to evade us will finally pay up through strict enforcement.” Since RRA began publishing names of defaulters, several business owners have emerged out of their hideouts and have paid close to Rwf2 billion in arrears. With enforcement campaigns getting more intense, Gayawira is optimistic many more will wish to pay their debts and avoid the embarrassment that comes with enforcement. Three lists of tax defaulters have been published over the last one month with a total of Rwf55 billion in tax arrears, although RRA is currently focused on enforcing payment from those appearing on the first list. Some businessmen who preferred anonymity told The New Times that they are incurring heavy costs due to automation of transactions, as required by law – and that some of these costs have made it difficult for small and medium businesses to break even. However, last month, the Commissioner General of RRA, Richard Tusabe, told The New Times that taxpayers can negotiate “a flexible way of meeting their obligations” with the tax authority, while government can even pardon or waive arrears for companies that have failed to break even. Government expects RRA to collect Rwf906.6 billion in the 2014/2015 fiscal year as part of broader efforts to reduce on aid dependency. Every year, at least 4 per cent of the total tax revenues collected is from tax arrears, according to RRA.

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RRA takes over rent collection at Kigali market over tax arrears