Rwanda revenue Authority-RRA has exceeded its target for the first semester of the fiscal year covering July- December, 2015 by 102.2 percent collecting Rwf 470.6 billion against a target of Rwf 460.3 billion.
The collections that excluded local government tax and fees saw the tax body Total revenue collections between July and December which excluding local government amounted to Rwf 463.5 billion against a set target of Rwf 455.0 billion in tax revenues, an increase of 13.9 percent.
While non-tax revenues amounted to Rwf 7.1 billion against a target of Rwf 5.2 billion recording a surplus of Rwf 1.9 billion or 35.6 percent target.
“We are very positive with this performance as we look forward towards achieving the target for the whole fiscal year that ends in June, 2015,” said Richard Tusabe, Commissioner General for the tax body.
While releasing the performance on Tuesday, the commissioner General said that total central government revenue collection during the period grew by 14.2 percent in comparison with collections in the same period in 2014.
The report indicated that Value Added Tax-VAT collection contributed Rwf 151.8 billion against a target of Rwf 148.2 billion which is an achievement of 102.4 percent and realized a growth of 11.0 percent with a nominal increase of rwf15.1 billion.
Whilst, Pay as you earn (PAYE) contributed Rwf2.7 billion or 2.6 percent and the growth of 11.6 percent when compared to the same period in 2014.
And, excise taxes recorded Rwf 4.5 billion above the target which is an achievement of 106.8 percent with overall profit tax amounting to Rwf 65.7 billion against the target rwf75.3 billion.
On the other hand, revenue Authority indicated that Provisional collections from local government taxes and fees amounted Rwf 13.4 billion against the set target of Rwf 14.9 billion which an ache9vmnetn of 89.9percent.
The tax body attributed to the sensitization and education to various sectors and the general public on the importance of paying taxes as well as efforts to promote Electronic billing machines.
“Activities targeting widening the tax base through taxpayer registration were carried out focusing specific sector which contributed to this growth,”Tusabe added.
From this, the number of tax payers increased by 9,726 which is 7.4 percent by December 2015 when compared to June 2015 with a total of 9,966 Vat registered taxpayer had electronic billing machines.
Also, the body recorded an increase in demand for imports from countries from outside both EAC and non EAC and COMESA region saw the import duty growing by 9.8 percent year on year.
He adds, “The decline in mineral export however affected the tax base of the country with revenue collections from mining royalties amounting to Rwf1.7 billion against set target of rwf 2.6 billion.”
But the Authority still has a hard task ahead to achieve the fiscal year targets on account that it has to raise Rwf 507.46 in the second semester.