(Ecofin Agency) - In the fiscal year 2020/2021, Rwanda is expected to return to the good fiscal performance of recent years. For the first quarter of the year, the country mobilized 371.5 billion Rwandan Francs (RWF), or about $380 million, in tax revenues; this makes 105% of the initial target. The announcement was made on November 4 by Pascal Bizimana Ruganintwali (pictured), Commissioner General of the Rwanda Revenue Authority (RRA).
Amid the covid-19 pandemic, which has considerably slowed down business activity (particularly tourism) in the country, this good performance offers interesting prospects for economic recovery.
In July 2020, the RRA reported that it had managed to mobilize only 93% of targets for fiscal year 2019/2020 and even expected a 10% drop in performance for 2020/2021. According to Commissioner Ruganintwali, the good performance recorded in the first quarter of the current fiscal year is the result of a strategy to increase the VAT (value added tax) collected by the institution.
“We have put much efforts into technology, for instance, ensuring the use of EBM (electronic billing machine) by taxpayers, especially on imported commodities and industries. This limited tax evasion.” The official said, according to comments relayed by New Times.
Also, the fairly rapid reopening of businesses, as part of the lifting of the restrictive measures imposed to slow the spread of the pandemic, has led to a quick resuming of tax payment.
Moutiou Adjibi Nourou