Rwanda: Regional Integration 'Not Affecting RRA Targets'

Officials at the Rwanda Revenue Authority (RRA) have said that regional integration has reduced customs tax but the effects are compensated through other sources of revenue.

RRA Commissioner General, Ben Kagarama, yesterday, explained that the integration process has eased cross border trade, thereby favouring traders to purchase large quantities of goods from which they pay profit and value added tax after sales.

"Other forms of tax collected from within the country are what helps to compensate the customs tax which is bound to reduce as the country achieves full integration into regional blocs," Kagarama said.

He said that, over the years, there has been a progressive increase in the amount of tax collected and this year's target of Rwf532 billion will be surpassed.

"With less than three months to end the fiscal year, there is no doubt that we can even go beyond the targeted achievement because there is a reasonable increase in businesses and investment," he said.

Kagarama explained that policies to further streamline tax collection strategies such as introduction of various online services for easy service delivery have been rolled out.

Rwanda is a member of the East African Community (EAC) and the Common Market for Eastern and Southern Africa (COMESA). Most local leaders are sure that the country will not to be affected financially.

Kigali City Mayor Fidel Ndayisaba, yesterday, also told The New Times that local administrative measures are in place to ensure that no individual evades paying tax.

"This is a way of making sure that projections from our internal sources of revenue are met," he said.

In a similar context, Gerald Nkusi, the Deputy CEO in charge of Advocacy at PSF, observed that the private sector has a major role in increasing revenue through taxes.

"Members of our federation should be aware that complying with all tax regulations is the best way to help our economy to grow," he said.