This initiative was introduced in February encouraging clients to request for EBM receipts every time they purchase things from local enterprises thereby attaining eligibility to receive a reward equal to 10% of the VAT paid on each EBM receipt.
Speaking during the release of the Financial Year 2023/2024 performance results, Batamuliza Hajara, the Commissioner, Domestic Taxes Department, said a total of RWF 16 billion was registered in sales during the period under review, with the government collecting RWF 2.4 billion in VAT.
Hajara confirmed that 10% of the VAT collected will soon be distributed to 23,675 beneficiaries who have registered their claims with RRA.
During the financial year which ended on June 30, RRA collected RWF 2.62 trillion in revenue from taxes, falling short of its target by RWF 17.8 billion (0.7%). However, the revenue netted represents a growth of 12.3% compared to 2022/23.
Additionally, during the financial year 2023-2024, RRA financed 51.2% of the national budget, up from 48.9% the previous year, 2022-2023.
RRA Commissioner General Niwenshuti Ronald attributed the RRA's performance to several factors, including the increased use of the EBM system by businesses. The number of taxpayers registered on EBM increased from 84,448 in fiscal year 2022/23 to 117,631 in 2023/4.
RRA also credited the VAT reward program and Voluntary Disclosure Incentives for the positive performance. 1,783 taxpayers participated in the disclosure program, revealing a total of RWF 14.3 billion in previously undisclosed income. So far, RWF 6.6 billion of this amount has been collected.
Niwenshuti also attributed the 12% growth in national revenue to the strong economic growth of 9.1% recorded between July 2023 and March 2024 and the automation of key services which simplified communication and service delivery. This year's economic growth is projected to be 7.4%.
The Commissioner General also expressed his optimism that RRA will achieve its revenue target of 3 trillion in the current financial year.
'This year, our revenue target is set at an ambitious sum of RWF 3,061.2 billion which is 54% of the national budget of slightly over RWF 5,5 billion and we are very optimistic that we shall achieve it,' Niwenshuti remarked.
Currently, Rwanda's tax revenue stands at 15% of its total GDP of RWF 16.355 trillion.
Wycliffe Nyamasege
Source : https://en.igihe.com/news/article/government-to-disburse-rwf-244-million-in-tax-refunds
