POST Online Media Lite Edition



 

Rwanda: Taxes will contribute 20.4% to GDP

Christian Fernsby |
Prime Minister Edouard Ngirente has said that more efforts are needed in tax collection so that taxes contribute 20.4 per cent to national Gross Domestic Product (GDP) by 2024. He said that the target is set under National Strategic Transformation (NST1).

Article continues below



Topics: RWANDA    TAXES    GDP   

He was speaking on Friday during the taxpayers' appreciation day at Intare Conference Arena.

In the 2018/19 fiscal year, taxes contributed 16.3 per cent from 11.3 per cent in the past ten years.

"This is an occasion to celebrate economic development achievements thanks to the contribution of taxes. We thank Rwanda Revenue Authority for exceeding the target in terms of tax collection for 2018/19 fiscal year," he said.

He said taxes will increase by also promoting locally produced products and exports development to ensure self-reliance under vision 2050.

"We urge taxpayers not to evade taxes. We urge them to use EBMs for efficient tax collection," he said adding that government is going to assess all challenges expressed by taxpayers.

Uzziel Ndagijimana, the Minister of Finance and Economic Planning said that taxes contributed 65.6 per cent to the 2018/2019 budget and that the target will increase to 68.3 per cent in the 2019/2020 fiscal year considering the budget of Rwf2. 876 billion.

In the 2018/19 fiscal year, Rwanda Revenue Authority collected Rwf1,422 billion surpassing the target of Rwf1,392 billion.

"This means an increase of Rwf30 billion equaling 2.2 per cent," Pascal Bizimana Ruganintwali, RRA Commissioner General said.

He added that the challenges still persisting include people who do not register their income generating businesses, evading the use of EBMs invoices, smuggling and others.

"This fiscal year, we have set a target of collecting Rwf1.579 billion. We continue campaigns to educate taxpayers, reform tax laws and enforce the use of EBMs and ICT in service delivery," he said.

He further added that campaigns have started to enforce the use of EBM Version 2, the software which is supposed to replace the Electronic Billing Machines.


What to read next

Rwanda moves to double exports to Egypt
World Bank projects Rwanda's economic growth at 7.4% in 2015
AfDB approves $245 million for Uganda-Rwanda transport project