The Rwanda Revenue Authority (RRA) has set an ambitious tax collection target of 3.061 billion Rwandan Francs for this fiscal year, aiming to fund 54% of the national budget. This announcement kicked off a month dedicated to recognizing Rwanda’s top taxpayers for the 2023/2024 fiscal year.
During a press conference held at the Ministry of Finance and Economic Planning on Friday, RRA leaders outlined their plans to celebrate exemplary taxpayers, following last year’s tax revenue of 2.639 billion Rwandan Francs—a 12.8% increase over the previous year.
RRA Commissioner General Niwenshuti Ronald emphasized that honoring top taxpayers is part of RRA’s broader strategy to promote a culture of compliance and fiscal responsibility. “We want to highlight the critical role that compliant taxpayers play in national development and inspire others to follow suit,” he stated.
Amid these efforts, business leaders in Rwanda are advocating for a reduction in the value-added tax (VAT) from its current rate of 18%. Jeanne Francoise Mubiligi, Chairperson of the Private Sector Federation (PSF Rwanda), expressed that a reduced VAT rate could alleviate financial pressure on businesses and foster growth.
In response, Finance Minister Yusuf Murangwa clarified that the government has no immediate plans to lower VAT, countering claims that Rwanda’s tax rates are high compared to other East African countries.
The government has also been promoting the use of Electronic Billing Machines (EBM) to boost tax compliance and transparency. Consumers are now encouraged to request EBM receipts, with an incentive program in place to reward those who do. Since EBMs were introduced in 2013/14, VAT revenue has surged from 259.1 billion Rwandan Francs to 792 billion Rwandan Francs in 2023/24, marking a 205.6% increase.
This month’s taxpayer appreciation events highlight RRA’s dual commitment to achieving record revenue targets and fostering a collaborative, compliance-driven relationship with the Rwandan business community.
