Posted on June, 14, 2017 at 10:35 am
Rwanda Revenue Authority (RRA) has said the Government’s decision to maintain existing tax policy measures in the financial fiscal year 2017/2018 will help foster business growth and predictability.
Announcing the provisional budget for 2017/18, Finance and Economic Planning minister Claver Gatete said the government would not introduce new or increase taxes but would rather seek to improve compliance.
Richard Tusabe, the Commissioner General, RRA, welcomed the decision and said it would help shore up the private sector.
According to Tusabe, the country is increasingly attracting investors that have operated in mature markets elsewhere in terms of tax administration and, therefore, expect to find the same when they come into the country.
“We want to first bridge the gaps and loopholes and improve in terms of compliance as well as tax administration,” he added.
Recently, the tax body said it did not want to overburden compliant taxpayers and wanted to rather focus of improving efficiency and create a more friendlily business environment.
He was yesterday speaking during a budget breakfast meeting organised by EY, a global leader in assurance, tax, transactions and advisory services.
David Baliraine, the Associated Tax Director at EY Rwanda, said enhancing tax efficiency and ensuring that the existing loopholes are fixed will help generate revenue to help cover-up for new tax exemptions especially in the area of agriculture.
As tax advisors we cannot certainly paint the picture until the new income tax law is passed, he added.
“The law is expected to be passed soon and that is when we shall be able to clearly tell which direction the country is taking when it comes to tax policy measures.”
Meanwhile, the Permanent Secretary at the Ministry of Finance and Economic Planning, Caleb Rwamuganza, said government will continue to invest in infrastructure and agriculture for sustained economic growth.
Source: The New Times