Rwanda Revenue Authority (RRA) has been on the prowl rounding up tax defaulters as it begins the journey to meet its revenue targets for this financial year. Taxes are the lifeline of any economy and no one stringently applies compliance than the most advanced countries. Failing to file tax returns or under declaration can land one in heavy problems; very hefty fines and even imprisonment. In some less developed countries, tax payers connive with the taxman to fleece the government, a little brown envelop slipped under the table does the job; the tax auditor looks the other way. The government fails to deliver public services and falls deeper and deeper into international financiers clutches and becomes vulnerable to external influence. RRA has it within its rights to try and plug loopholes in tax collection and it should not listen to lame excuses. The most widespread is from operators of entertainment spots. They claim that Electronic Billing Machines. How is it different from the market? Customers pay upfront for their goods and services, the same as night clubs where one is obliged to pay before being served. So, where is the problem? All they need is to pass their transactions through the billing machines and RRA will get its due without having to first pass through closing down establishment and interrupting business. But the tax body should also be flexible; there is no fixed price for imported goods; markets differ and it also depends on one’s negotiating skills. No glove fits all. While RRA has over the years been trying to ease the acrobatics in paying taxes, it should also do likewise for its tax regimes. Simply because some unscrupulous people cheat in their invoices should not be the basis of passing down blanket condemnation. That is why people look for ways to beat the system, so it should approach the issue with a carrot-and-stick strategy.
