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RRA’s Bizimana Pascal on the effectiveness of tax reforms
Last year, the Rwanda Revenue Authority (RRA) implemented new reforms to ease tax payment and to further reduce the time spent on matters concerning tax administration. CNBC Africa’s Fiona Muthoni spoke with Bizimana Ruganintwali Pascal, Commissioner General of RRA for more.
Mon, 29 Jun 2020 10:10:40 GMT
Disclaimer: The following content is generated automatically by a GPT AI and may not be accurate. To verify the details, please watch the video
AI Generated Summary
- Introduction of ebm machines to enhance transparency and efficiency in tax administration
- Expansion of ebm Version 2 adoption to monitor transactions and identify potential VAT registrants
- Focus on revamping communication strategies and data security measures to improve compliance and transparency
The Rwanda Revenue Authority (RRA) has been working tirelessly to implement new reforms aimed at easing tax payment processes and reducing the time spent on tax administration matters. Last year, the government of Rwanda made a significant step by providing ebm machines for free throughout the entire country. In a recent interview with CNBC Africa, Bizimana Ruganintwali Pascal, Commissioner General of RRA, shared insights on the impact of these reforms and the measures put in place to improve tax revenue collection.
One of the key reforms mentioned in the interview is the introduction of ebm machines in the taxation system. Pascal highlighted that this move has not only helped in curbing tax evasion but has also enhanced transparency and efficiency in business operations. The visibility on transactions and the accessibility of data for taxpayers have resulted in increased trust and confidence in the tax administration. Taxpayers can now file their returns easily and receive refunds promptly.
Furthermore, the interview delved into the improvements seen in the number of taxpayers adopting the ebm Version 2 model. Pascal noted that the new version offers enhanced functionalities and data storage capabilities, especially for businesses not registered for Value Added Tax (VAT). By closely monitoring transactions, RRA aims to identify potential taxpayers for VAT registration based on turnover levels. While there has been a significant increase in the adoption of ebm Version 2, there is still a gap to be addressed, and the authority has set targets to continue expanding the usage of these machines.
Addressing the challenge of culture and compliance among taxpayers, RRA plans to revamp its communication strategy to engage effectively with the taxpayers. Introducing the 'MyArray' system, which provides a single entry point for taxpayers to access all relevant tax information, is expected to streamline communication and information dissemination. By making tax-related information easily accessible, RRA hopes to improve compliance and foster a culture of transparency.
Moreover, Pascal emphasized the importance of data security in the technological advancements being made by RRA. Ensuring the confidentiality and integrity of taxpayer data is paramount, and the authority is actively working to establish secure connections with multiple internet providers to prevent disruptions in data availability. By leveraging technology while prioritizing data security, RRA aims to provide taxpayers with a seamless and secure tax administration experience.
In conclusion, the Rwanda Revenue Authority is dedicated to enhancing tax administration processes through innovative reforms and technological advancements. By focusing on transparency, efficiency, and data security, RRA is paving the way for a more streamlined and compliant tax environment in Rwanda.
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