PRESS RELEASE: RRA announces revenue performance for July-December 2016
Rwanda Revenue Authority (RRA) collects Tax and Non-tax revenues for Central Government and Local Government Tax and Fees on behalf of Districts. Total Revenue collections for July-December 2016 (excluding local government tax and fees) was Rwf 514.9 billion against a target of Rwf 516.5 billion; which was a performance of 99.7%.
The Tax revenue collection for July-December 2016 was Rwf 507.2 billion against a set target of Rwf 509.8 billion which is an achievement of 99.5%, below the target by Rwf 2.6 billion. Total central government revenue collected by RRA during July-December 2016 grew by 8.4% in comparison with July-December 2015 collections.
In addition, non-tax revenues collected by RRA were Rwf 7.7 billion against a target of Rwf 6.7 billion, registering a surplus of Rwf 1.1 billion or 9.2% over the target.
Collections from Local Government Taxes and Fees (trading license, property tax, rental income tax and fees) for July-December 2016 amounted to Rwf 16.5 billion against a target of Rwf 17.8 billion which is an achievement of 92.7%.
Some measures that impacted on revenue performance
1. Taxpayer registration: Activities targeting broadening of the tax base through taxpayer registration were carried out focusing on specific sectors. These included commercial houses (for VAT on rental income), new registered taxpayers, meeting requirements for VAT registration, professional associations like architects, engineers, bailiffs, property valuers, etc.., for registration on CIT/PIT and VAT. As a result, the total number of taxpayers increased by 7,840 (5%) in six months from July to December 2016.
2. Strengthen sensitisation and use of EBM: By end December 2016, a total of 12,805 VAT registered taxpayers had Electronic Billing Machines, representing an increase of 12% (1,369) in a period of six months from 11,436 by end June 2016.
3. Conduct sensitization and education campaigns to various sectors and the general public to improve their understanding on tax matters and improve taxpayers’ compliance.
4. Closely monitor compliance of taxpayers, especially non filers and non payers and take immediate actions for non-compliance cases.
5. Enforcement of tax arrears: the total tax arrears collected during July-December 2016 was Rwf 19.5bn, representing 3.8% of total tax collection.
6. Online facilities such as e-tax that simplifies the process of filing and paying taxes.
- The fall in CIF of imports, especially non-EAC imports, negatively affected collections for customs VAT, customs excise, import duty and the infrastructure development levy.
- High inflation in food and non-alcoholic beverages negatively affected household consumption of goods and services for which domestic excise and VAT are applicable.
· Increasing tax on imports of worn clothing has significantly reduced related import taxes.
Key priorities for 2nd Semester (January – June 2016/17)
The tax revenue target for the 2nd Semester 2016/17 is Rwf 588.1 billion: This includes Central Government Tax Revenue equivalent to Rwf 571.7 billion and the Local Government Tax of Rwf 16.4 billion. In addition, non-tax revenue target for S2, 2016/17 is Rwf 21.0 billion.
To achieve this target, RRA will focus on the following priorities:
1. Facilitate taxpayers to process VAT declarations together with the validation of all input VAT information attached in the annexure.
2. Conduct enforcement for all VAT registered taxpayers in order to mobilize them to use EBM as required and to encourage buyers to always request for EBM receipts at every point of purchase.
3. Implement the Electronic Cargo Tracking System in order to reduce fraud and enhance trade facilitation along northern and central corridor.
4. Continue taxpayer registration process bringing more taxpayers who are informally involved in business into the tax net, with the aim of widening the tax base.
5. Continue enforcement measures of tax arrears
6. Continue with sensitization and education campaigns reminding taxpayers to fulfill their tax obligations and to use online facilities available for them.
For further information please contact Ms. MUKASHYAKA Drocelle, the Deputy Commissioner for Taxpayer Services Department on firstname.lastname@example.org Telephone: 0788351001