Self reliance is the objective - Kagame

KIGALI-President Paul Kagame has called upon the business community to be tax compliant so that the country can fund its own budget and reduce dependence on donor support. The President made the call, yesterday, while officiating at the 10th National Taxpayers’ Day celebrations held at the Rwanda Revenue Authority (RRA) headquarters in Kigali. The day was marked under the theme “Tax Compliance Dignifies A nation.” The President pointed out that while the budget is currently supported by development partners and revenues from taxes, the aim should be self reliance, whereby taxes fully support the budget. Kagame noted that the support Rwanda receives from developed countries is from the taxes paid by their citizens, which should serve as an example to Rwandans. The Head of State urged the people to value themselves and work towards building the country, the same way those in developed have managed to do. The President added that donor countries too have their own concerns and as they continue to get problems, they will certainly reduce the support they extend. He told the Rwandan people that the annual celebration is not only a time to reflect on the country’s economy, but also to assess what has been achieved in the past and exchange ideas on what should be done next. President Kagame noted that the increased revenue collections is a positive sign which shows that Rwandans can work to find solutions to their problems, without depending on donors and well-wishers. He called for stronger partnership between the government, the private sector and all Rwandans towards the development of the country, adding that collection of taxes will not be smooth if tax payers do not understand the importance of compliance. The President handed awards to the best tax payers and thanked them for contributing to the development of the country. He went on to acknowledge RRA’s tax system which has streamline the taxation process and facilitated the growth of businesses. John Rwangombwa, the Minister of Finance and Economic Planning said that there was need to improve in all sectors so that taxes can contribute to national development. “Contribution to the national budget from taxes has been higher over the last ten years,” he said. “Today we celebrate tax compliance which defines the dignity of our investors” The Commissioner General of Rwanda Revenue Authority, Ben Kagarama, said that tax collection improved through a series of policy implementations and partnership with the private sector as well as with tax authorities from other Africa countries. “RRA’s noble collaboration with taxpayers has ensured that collection of revenue is smooth, voluntary and done on time. Our target for 2010-2011 was Rwf458 billion, but we surpassed it and collected Rwf491 billion,” Kagarama said. “Increase in tax collection is a testimony that citizens of Rwanda are willing to collaborate with the government to develop their country through the fruits of their labor. We have raised the target collection to Rwf515 billion for this year and we are confident that we shall achieve it.” Faustin Kananura Mbundu, the President of the Private Sector Federation (PSF), commended RRA for celebrating taxpayer’s contribution to national development despite the economic challenges they face. “Last year taxpayers faced challenges arising from payment of VAT, but the tax authority made it possible for businesses to pay it in instalments,” Mbundu said, adding that, “apart from the establishment of new laws that streamlined tax payments, custom stations at borders are efficient and operate 24 hours. These serve as incentives to improving businesses.” The best taxpayer award for 2010-2011 was presented to giant brewery, Bralirwa, whereas Bank of Kigali was rewarded for being the most compliant large taxpayer. Sosoma Industries was recognized in the small business enterprise category as the best taxpayer, while Jean Baptiste Nemeyabahizi, a businessman, was awarded as the most innovative taxpayer. For the last 10 years, revenue collections have increased significantly from Rwf 81billion in 2001 to Rwf 426 billion in 2010. Ends