Kigali Independent University is private institutions. This presentation was done by Group 3 Master of finance.

1. RRA is mandated assess, collect, and account for
tax and other specified revenues.
a . Discuss the strategies RRA has employed to
mobilize tax revenues
b. Highlight the challenges faced by RRA in the
course of mobilizing revenue.
ULK KIGALI CAMPUS
MASTER OF FINANCE
ADVANCED TAXATION
ASSIGNEMENT
GROUP 3
Lecture: Dr Robinah N Kalemeera

2. Introduction& Definition
 The tax structure of each country is unique and undergoes changes
during the Course of the process of economic growth.
 A tax (from the Latin tax; "rate") is a financial charge or other levy
imposed upon a taxpayer (an individual or legal entity) by a state or the
functional equivalent of a state such that failure to pay, or evasion of or
resistance to collection, is punishable by law.
 The Rwanda Revenue Authority (RRA) was established under law N°
15/97 of 8 November 1997 as a quasi-autonomous body charged with
the task of assessing, collecting, and accounting for tax, customs and other
specified revenues.

3. RRA Vision and Mission
• To become a highly efficient and modern revenue collection
agency enhancing national growth and development, and
instilling equity, transparency, and professional values in
Rwanda Revenue Authority staff.
• To contribute to national development by maximizing
revenue collection at minimum cost and providing quality
input to tax policy development, while ensuring a high
quality and equitable service.

4. Taxation policy in Rwanda
Taxation Policy in Rwanda is focused on widening the tax base
to increase fiscal revenues especially focusing on registering
the informal sector, simplifying procedures and providing
tax incentives to encourage both foreign and domestic
investment.

5. STRATEGIES EMPLOYED BY (RRA) TO MOBILIZE TAX
REVENUE
• Online Tax Clearance certificate
• VAT Quarterly payment
• Introduction of Bloc Management
• Online registration of taxpayers through RDB
• Online Tax Calculator
• Recruitment of Tax consultants and Tax Advisors
• Dialogues with Taxpayers(Tax Issues Forum, Tax
Advisory Council )
• E-filling and e payment processes
• RRA Call center and Media strategy( Radio, TV , Website ,etc )

6. Examples:EBM &CALL CENTER

7. THE CHALLENGES FACED BY RWANDA REVENUE
AUTHORITY IN THE COURSE OF MOBILIZING
REVENUE.
• Smuggling and tax evasion
• Understating sales
• Overstating purchases
• Non-issuance of VAT invoices
• Forging of certificates of origin and invoices for
imported goods
• Some taxpayers fail to register, file and pay on time.

8. EXAMPLE:Smuggling

9. Cont.…….
• Large informal sector
• Low tax paying culture among taxpayers
• Limited human resource base
• Ignorance of some taxpayers
• Transfer pricing schemes
• Limited tax base
• Level of understanding
• Introduction of new system
• Tax expenditure

10. Conclusion&Recommendation
• Strategies adopted by RRA to mobilize tax revenue, shows that the,
fiscal year 2012/13 ended on a high in terms achievements.
During this year, Rwanda Revenue Authority (RRA) surpassed the
target by Rwf 24.2 billion or 3.7%.
• RRA to come with various initiatives to increase revenue collection,
improve service delivery and strengthen cooperation with regional
and international bodies.
• RRA strongly remained focused on partnership with Private sector
in taxpayer sensitization campaigns aimed at encouraging
voluntary compliance. These helped in maintaining and
strengthening the institutional reputation while ensuring the staff
capacity to deliver to the expectations of customers.

11. Recommendations
• RRA Mobilize informal taxpayers through
community work (Umuganda), Workshop and
forum and local governance.
• Identify informal taxpayers through local
governance based on the activities operates in their
area.
• Collect taxes in informal taxpayers through private
companies on behalf of Rwanda revenue authority with
target and get commission on tax collected

12. Cont.……
• Conduct a large assessment on the informal
taxpayers with overall aim in categorizes those
informal taxpayers.
• Reform tax system on the tax expenditures such as
tax incentive and tax exemption through provide
consumption tax on some of luxury electronics
goods (Smart phones, computers, IPAD and tablets,)
• Improve the advocacy of EBM among taxpayers both
large and small taxpayers.

13. Group Members
1. MUHIRE Raymond
2. RURANGIRWA Pacifique
3. MUSANABERA Goreth
4. NSHIMIYUMUKIZA Steven
5. NYIRAKAMANA Marguerite
6. NGIRIMANA Noele
7. NTAKIRUTIMANA Edourd
8. HABINEZA Jean Marie Vianney
9. NYIRIGIRA Emmanuel

14. Thank you!!!!!
July 2014