The figures were disclosed during a press briefing held on July 8, where RRA shared the performance of tax collection in the fiscal year that ended in June 2025.
According to RRA Commissioner General Ronald Niwenshuti, this represents a 16.7% increase compared to the previous year (2023/2024), when Frw 2.619.2 trillion was collected.
The amount collected in 2024/2025 accounts for 52.9% of the total national budget for that year.
Several key factors contributed to this performance. One was the continued push to promote the use of Electronic Billing Machines (EBMs). The number of EBMs distributed increased from 117,631 in 2023/2024 to 147,700 in 2024/2025.
Among new traders who received EBMs, 44,000 were registered for Value Added Tax (VAT), up from 32,529 in the previous year. RRA also benefited from its voluntary tax declaration program, which brought in Frw 18.1 billion from 5,328 participants.
Additionally, a significant rise in imports contributed to the increased tax revenue. Imports went up by 21.9% compared to the 16.3% that had been projected. Efforts to combat smuggling also helped, yielding Frw 14.6 billion, while recovery of tax arrears brought in around Frw 278 billion.
Economic growth also played a role. The economy grew by 8.0% between July 2024 and March 2025, exceeding the projected 7.6%, which boosted tax collections further.
Looking ahead, RRA has set a tax collection target of Frw 3,628 trillion for the 2025/2026 fiscal year, which is about 53% of the projected national budget of Frw 7,032.5 trillion for the same period.
Niwenshuti noted that RRA plans to strengthen tax collection in underperforming sectors, such as manufacturing and construction.
He highlighted that in construction, many transactions go undocumented, and some traders operate informally or fail to provide proper receipts. He also pointed to cases where companies have misrepresented prices or used fake invoices.
To meet its new goals, RRA will intensify its efforts to fight smuggling, one of the main causes of tax evasion, and improve the use of digital tools.
Niwenshuti said RRA will enhance its existing technology and introduce new systems, particularly in customs tax collection.
The authority also plans to make EBM usage more efficient and easier to monitor to ensure accurate tax declarations.
IGIHE
