EDITORIAL: RRA's new initiative will fix tax evasion, late remittances

The Rwanda Revenue Authority (RRA) has adopted a new approach of door-to-door registration of taxpayers, which is expected to enhance efficiency and significantly ease revenue collection and administration. The tax body has in the past faced challenges as some taxpayers, especially at the grassroots, evade taxes while others never remit taxes on time. Therefore, the new initiative could go a long way in helping the tax body to plug the loopholes that have in the past led to loss of revenue. Though this approach is good, the tax body should employ other supporting mechanisms to ensure taxpayers understand and appreciate it. RRA must strive to avoid the challenges that have plagued the full rollout and use of the electronic billing machines (EBMs) by VAT-registered taxpayers. VAT-registered taxpayers were expected to have installed EBMs by March 31, 2013, but RRA was forced to postpone the deadline many times since the majority of traders had not acquired the machines. It has now set another deadline of March 31 this year. The challenges with EBMs could have come about because businesses did not understand the essence of using the machines and were thus reluctant to adopt the new arrangement. With this in mind, RRA should therefore start countrywide campaigns to sensitise Rwandans on the importance of the door-to-door registration of taxpayers; and why paying taxes is a noble obligation for every business and citizen, if they want to avoid similar challenges. Bringing on board local leaders is a smart move, but more mechanisms are required to ensure that the initiative bears the desired results. RRA should also widen the tax base to ease the burden on a few taxpayers, who are always complaining of high taxes.

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EDITORIAL: RRA's new initiative will fix tax evasion, late remittances