RRA surpasses target by 3.8 percent

Rwanda Revenue Authority (RRA) collections for the period July to December 2010 rose to Rwf222.8 billion, surpassing its target of Rwf214.6 period. The surplus represents Rwf.8.3 billion or 3.8 percent. Announcing the results yesterday during a press briefing, Kampeta Sayinzoga, the Permanent Secretary in the Ministry of Finance and Economic Planning attributed the high performance to improved efficiency in tax administration and the implementation of tax reforms. The reforms implemented, she said, included authorising RRA to start collecting social security funds and health insurance contributions –RAMA on behalf of the two institutions. This has helped to widen the tax base. “We are on track on all our domestic revenue targets and all the policy changes, which are underpinning the revenue targets,” Sayinzoga said. She also noted that during the six months period, RRA expanded the tax base by registering 1,602 as new taxpayers under Pay As You Earn (PAYE).“This also shows that more people are joining the formal sector.” Sayinzoga said, further reforms are to be implemented to facilitate tax collection including installing an electronic single window, setting up One Stop Border Posts with 24 hours at additional border posts as well setting up a cargo tracking system. According to Mary Baine, the Commissioner General of RRA also strengthened Value Added Tax (VAT) invoicing operations, facilitating taxpayers in understanding and complying with VAT obligations. “This has largely helped to achieve the targets,” the Commissioner General said. In the period under review 894 VAT tax payers were registered, bringing the total registered taxpayers to 4,957.The overall VAT collections exceeded the target by 4.7 percent due to an increase in volume of imports and an increase of domestic VAT turnover declared, which increased by 23 percent in the first semester of the FY2010/2011 compared to first half of 2009/2010. . The tax body says it intends to continue focusing on increasing compliance within SMEs by giving technical assistance including accounting skills and filing VAT on a quarterly basis. Ends

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RRA surpasses target by 3.8 percent