RRA meets manufacturers, pledges to lower tax burden

The Rwanda Revenue Authority (RRA) has vowed to ease the current high tax rates, a move that would benefit businesses and the country at large. The development was announced on Friday, January 20, during a consultative meeting with manufacturers in Kigali. Concerns of exorbitant tax charges emerged recently, putting the revenue body on spot. The Deputy Commissioner of RRA, Jean Louis Kaliningondo, said the revenue body is seeking for harmonized compliance from taxpayers, which he said would allow for tax reforms. Kaliningondo said: “The most important thing is that we want to show that there is willingness on both parties involved to work together towards a harmonised view on how compliance should be raised in the country because that is the end goal. There is a reason why fiscal laws exist in every country and, by paying taxes, you are maintaining public order.” He added that through dialogue with different stakeholders, reforms are going to be made by considering taxpayers' ideas and concerns. “We are going to gather ideas to reform the fiscal law and produce a better fiscal environment for our economy to thrive”. The RRA notes that there are still manufactures who do not issue EBM invoices or state incorrect items' prices and under-report in the import and customs valuation by giving out false information. From 2013 to 2023 EBM invoices upped from 1,023 to 80,369. In 2021 it was increased on average by 35%. Manufacturers voiced numerous concerns. Dieudonne Sibomana, Director General of Prince Industry in Bugesera District, which produces roofing sheets, stated that the new policy regarding imported raw materials to be delivered in customs departments takes a long time to clear import consignment. Sibomana said: ”Previously, imported raw materials used to come straight to our industries, but now the customs department is taking a while to clear our raw materials. For that, industries are facing shortage of raw materials. “Delays in importing raw material mostly affect the flow of production which results in a wastage of time, lowering reliability of products and disrupting the chain of supply. This sets back our business activities as well as impacting our growth.”

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RRA meets manufacturers, pledges to lower tax burden