RRA surpasses revenue target by Rwf 5.4 billion

Published by IGIHE
On 9 August 2017 saa 11:45
Views : 318
0 0

Latest statistics released by Rwanda Revenue (RRA) indicates that the revenue collection for financial year 2016/17 has surpassed the target by Rwf 5.4 billion.

In a statement released by the tax body on Wednesday August 9th, tax revenue collection for the financial year 2016/17 reported to be Rwf 1,086.8 billion was above the Rwf 1081.4 billion target; an impressive performance of 100.5%. The tax body revealed that tax revenue posted a growth of 10.2 per cent during this year, in comparison to 2015/16 performance of Rwf 986.7 billion hence making a nominal increase of Rwf 100.2 billion.

The Commissioner General at Rwanda Revenue Authority RRA Richard Tusabe has said that this implies the level of tax payer appreciation of the importance of paying taxes and compliance have been achieved through education and sensitization because of the reforms particularly the automation of processes to bring efficiency in tax administration in FY 2016/17.

“We introduced; Unified Declarations for PAYE and Social Security, Regional Electronic Cargo Tracking System and VAT Verification Control System, which have decreased leakages in VAT collections and eased refund process,” RRA Commissioner revealed
RRA revenue collection to budget increased from 55.36% in FY 2015/16 to 56.44% in FY 2016/17.

However, the tax authority cited a low target performance in local Government taxes.
Economic indicators in this financial year 2016/17 show the economy recorded a slow performance in first three-quarter, where real GDP grew by 5.4%, 2.4% and 1.7% for Q1, Q2, and Q3 respectively. Inflation rose to 6.8%.

With three months into the fiscal year, the slow economic performance is attributed to poor agricultural production due to bad weather. Food scarcities accounted for inflationary pressures with price indices for food and non-alcoholic beverages reaching a record 18.6%.

RRA Commissioner General expressed gratitude to the tax paying community in Rwanda for honoring their tax obligations.


Advertisement

YOUR OPINION ABOUT THIS ARTICLE

RULES AND REGULATIONS

Kwamamaza