City residents reluctant to pay land lease taxes

On 15 December 2017 at 08:13

As 2017 land lease tax-paying period elapses, Rwanda Revenue Authority (RRA) has revealed that there is a low turn up in Kigali City districts where Gasabo comes the last.

RRA and Gasabo District carried out on Wednesday land lease tax payment campaign which was aimed at raising awareness about tax payment among city dwellers.

Dubbed ‘RRA Iwacu’, the Deputy Commissioner for Regional and Decentralized Taxes, Ernest Karasira said the campaign aimed to remind population about paying before the deadline.

“Land lease tax fee is paid annually before 31st December and there are few days remaining to reach the end of the year, that is why RRA in partnership with local authorities has launched this campaign,” he said

He said they expected to raise Rwf3 billion in Gasabo District, but they had collected Rwf598 million, below 20% of the target by Wednesday 13th December.

He said, in Nyarugenge District, out of Rwf720 million that was expected by this year, 97.6% has been paid. Rwf361 million have been collected out of Rwf2,6 billion targeted in Kicukiro District.

According to RRA, Rwf6,5 billion taxes from land lease in 2016 and over Rwf7 billion is targeted around the country this year.

Gasabo District Mayor Stephen Rwamuragwa said paying taxes on deadline is a result of poor mindset.

“We still have mindset problem where our people want to pay everything on the deadline,” he said.

Taxpayer and Kinyinya resident, Innocent Muhigira said the campaign taught him a lot about land lease tax payment.

The law says that land lease tax should be paid on commercial, industrial and residential plots. It must also be paid on arable land with the size above two hectares.