Home Business & TechEconomy RRA Exceeds Revenue Collection Targets By Rwf60Billion

RRA Exceeds Revenue Collection Targets By Rwf60Billion

by Williams Buningwire
12:14 pm

Rwanda Revenue Authority (RRA) says it has exceeded revenue collection targets for the fiscal year 2020/2021 by over Rwf 60.1 billion, with revenue performance at 103.8%.

According to RRA, the total tax and non-tax revenues collected is Rwf1,654.5 billion compared to the targeted Rwf1,594.3 billion.

Considering the previous fiscal year 2019/2020 the revenue collection increased by 9.4%.

This performance was announced during the launch of taxpayer’s appreciation month held in Kigali City on October 28. It is themed “moving forward together for economic recovery.”

Jean Louis Kaliningondo, the Deputy Commissioner General of RRA said that good revenue performance of 103.8% resulted from resilience and commitment of the taxpayers, but also the efforts put in place by the government to support businesses from recovering from the effects of Covid-19 pandemic.

He explained that the government’s Covid-19 recovery initiatives including economic recovery fund and Manufacture and build to recover programs contributed to the good revenue performance.

“The taxpayers have been resilient and committed to meet their tax obligations despite challenges caused by Covid-19 pandemic, but the government has also worked hand-in-hand to introduce solutions and initiatives that helped to ensure compliance in paying taxes,” Kaliningondo said.

According to Kaliningondo the local government taxes and fees collections for 2020/2021 is Rwf77.8billion representing 94.3% compared to the Rwf 82.5 million targets.

During the first quarter of 2021/2022 fiscal year, RRA collected taxes and nontax revenues mounting Rwf416.7 billion, this represents 99.1% against the targets which were reportedly of Rwf420.4bilion.

The quarter one for 2021/2022 missed revenue collections worth Rwf3.7billion. The loss was attributed to the pandemic.

The targets for the whole fiscal year for 2021/2022 are Rwf1,755.5billion, according to RRA.

“Since the outbreak of the Covid-19 pandemic, most businesses were significantly affected, some are still struggling while others are recovering gradually, and this definitely affected our revenue collections, especially in the first quarter (July to September) of fiscal year 2021/2022,” Kaliningondo said.

The taxpayer’s appreciation month that started today will be marked by several activities including visiting taxpayer’s premises to identify the challenges affecting them, supporting taxpayers through corporate social responsibility (CSR) and supporting earthquake victims in Rubavu district, Western province.

Other activities will include creative industry challenges that will feature roles of taxes in the country’s development as well as Electronic Billing Machines (EBM) and provincial celebrations that will be held from 2 to 9th November 2021.

“This is the 19th time that we appreciate the role of taxpayers in building our nation. It is also an opportunity to discuss pertinent issues and find solutions,” Richard Tusabe, Minister of State in charge of National Treasury said.

“Government has put in place economic recovery strategies such as the economic recovery fund and manufacturing to build. These are aimed at supporting our private sector to bounce back from the adverse effects and build back better,” Tusabe added.

Provincial celebrations will be held in Nyagatare district, Eastern province, Muhanga district, Southern, Rusizi district, Western and Gicumbi district located in Northern province.

For national taxpayer’s appreciation month, it will be celebrated at Intare arena in Kigali city on November 19.

The taxpayer’s appreciation month will be wrapped up by the volleyball tournament in honor of the tax payers in the country. The competition will run from 27th to 28 November 2021.

“One of the biggest lessons we have learned from COVID-19 is that we have to put emphasis on import substitution and shorten the supply chain. We have manufacturers who are producing below capacity. They should be supported to produce at full capacity,” Tusabe said.

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