Dear editor,I am writing to correct the many factual errors in the piece referred to above which was published on 11 July, a day before Taxpayers’ Day in Kigali. On the face of it the piece is so full of inaccuracies and emotive language designed to appeal to the lowest levels of understanding that is difficult to know where to begin. Rwanda has the lowest top rate of personal tax in the region and one of the lowest in the world. Rwanda’s personal tax rate structure consists of an exempt amount, a 20% rate and a top rate of 30%. It is therefore mathematically impossible for any employee in Rwanda to pay 40% of their salary in income tax. A small amount of research before writing the article would have saved the author from this embarrassing error. Secondly, the author is clearly unaware of the difference between tax administration and tax policy. RRA collects taxes that are decided upon in Parliament. RRA does not set tax rates or the tax base. These are matters for government and elected politicians. Thirdly, again research would have lead the author to understand that the business tax rate in Rwanda is 30%, also the lowest in the region and one of the lowest in the world. Rwanda grants a wide range of incentives and generous depreciation allowances to businesses, which are all well appreciated by the business community. Finally, the author exhorts his readers that the best way forward is for his income to remain untaxed and that only his spending be taxed. Leaving aside for the moment the fact that RRA has no control over tax policy, it would be interesting to learn from him how he would protect the revenue since taxpayers would be free to spend their income anywhere, even outside the jurisdiction in neighbouring countries. I wanted to set the record straight. It would be far better if in future correspondents took time to research the facts before committing their opinions to paper.
