RRA collects Frw 660.7 billion in tax arrears for 2023/24 #rwanda #RwOT

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The arrears included Frw 52 billion from customs services, with 64.8% of this amount coming from public entities and 35.2% from private companies. Domestic tax arrears amounted to Frw 608.7 billion, including Frw 34.5 billion paid by public institutions, while Frw 574.2 billion was paid by private enterprises.

RRA's report highlights that tax campaigns and monitoring of domestic taxes contributed Frw 177.1 billion to tax revenue, a 3.7% increase. Additionally, individual income tax grew by 93.3% in 2023/2024, reaching Frw 37.9 billion, up from Frw 19.6 billion the previous year.

Despite significant progress in recovering tax arrears, Frw 126 billion remained outstanding by June 2024. Of this, Frw 5.6 billion from large taxpayers had not been overdue for more than three months, while Frw 44.1 billion from small and medium taxpayers fell into the same category.

Furthermore, Frw 24.5 billion was paid for arrears that had been outstanding for between three and six months, while Frw 58.4 billion was overdue for between six months and a year. Arrears that had been outstanding for more than a year amounted to Frw 476 billion.

To improve tax collection, measures have been implemented, including an increase in the use of electronic billing machines (EBM). Data shows that in 2023/2024, the number of large and small traders using EBM software increased by 122.6%, reaching 109,314, up from over 49,000.

The number of users of the 'EBM Mobile System' for issuing receipts via SMS grew by 49.7%, reaching 43,800, while the number of users of the 'Online EBM' system for service providers increased by 44.8%, reaching 9,788.

In total, RRA collected Frw 2.639 trillion in taxes for the 2023/2024 fiscal year, representing 14.6% of the national GDP and 53% of the government's budget.

Taxes are earmarked for different project sincluding infrastructure development.

IGIHE



Source : https://en.igihe.com/news/article/rra-collects-frw-660-7-billion-in-tax-arrears-for-2023-24

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