A birthday wish

Yesterday Rwanda Revenue Authority (RRA) celebrated its tenth anniversary. This year the domestic revenue component of the Budget overtook the external grants component predominantly thanks to wider taxation. Tax revenues have increased from Frw74 billion in 2000 to Frw111 billion in 2003 to an estimated Frw275 billion in 2008. The increase is remarkable. But the theme of RRA celebrations, ‘Be a compliant tax payer, build your nation’, pays homage to the fact that more people need to be paying taxes. By 2012 Rwanda hopes donor support will make up only 11 per cent of the budget. The key to meeting such targets lies in Rwanda’s capacity to tax its people. And this is no easy feat. All developing countries face formidable challenges when they attempt to establish efficient tax systems.