RRA, Businesses Open Tax Talks After Record Rwf3.96 Trillion Collection

Staff Writer
2 Min Read

The Rwanda Revenue Authority and the Private Sector Federation met on Tuesday to address tax-related challenges facing businesses, following a financial year in which government tax collections rose to nearly Rwf4 trillion.

The biannual high-level meeting reviewed concerns raised by the business community and explored practical measures to improve tax administration, compliance and service delivery.

RRA Commissioner General Ronald Niwenshuti commended taxpayers for their contribution to the strong performance. He told the meeting that the authority achieved 104.8 per cent of its collection target during the last fiscal year.

RRA’s published figures show that it collected Rwf3.956 trillion in central government taxes during the 2025/26 fiscal year, against a target of Rwf3.795 trillion. This represented 104.2 per cent of the target and a 27.7 per cent increase from the previous year. Local government revenues reached an additional Rwf137.9 billion.

The performance was supported by the registration of 126,282 new taxpayers, who contributed Rwf15.4 billion. RRA also recovered Rwf277.1 billion in tax arrears and enrolled another 43,243 taxpayers in the Electronic Billing Machine system.

Business turnover increased by 23.7 per cent, taxable corporate income rose by 22.9 per cent and taxable imports expanded by 29.6 per cent. PAYE collections also increased by 16 per cent as taxable employment income grew.

Niwenshuti said regular consultations with the private sector have produced practical solutions, improved services and contributed to amendments to tax legislation where necessary.

PSF Chairman François Twagirumukiza reaffirmed the Federation’s commitment to working with RRA to resolve outstanding challenges and encourage self-regulation, voluntary compliance and responsible business practices.

The discussions come as RRA targets Rwf4.640 trillion in central government taxes and Rwf165.9 billion in local government revenue during the 2026/27 fiscal year. The combined revenue is expected to finance approximately 61.6 per cent of Rwanda’s Rwf7.796 trillion national budget.

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