Wednesday, September 9, 2026
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ECONOMY

RRA and Private Sector Review Business Tax Challenges as Revenue Collection Hits Rwf3.96 Trillion

RRA and Private Sector Review Business Tax Challenges as Revenue Collection Hits Rwf3.96 Trillion

The Rwanda Revenue Authority (RRA) and the Private Sector Federation (PSF) held high-level talks on Tuesday, September 8, to address tax-related challenges affecting businesses and identify practical solutions.

The twice-yearly meeting examined ways to improve tax administration, service delivery and voluntary compliance while strengthening cooperation between the tax authority and the business community.

RRA Commissioner General Ronald Niwenshuti commended taxpayers for their contribution to the country’s revenue performance during the 2025/26 fiscal year.

He said previous consultations between RRA and PSF had produced practical solutions, improved services and contributed to amendments to tax legislation where necessary.

RRA’s published results show that the authority collected Rwf3.956 trillion in central government taxes during the 2025/26 fiscal year, exceeding its Rwf3.795 trillion target.

The collection represented 104.2 per cent of the target and a 27.7 per cent increase compared with the previous financial year. Local government revenue reached an additional Rwf137.9 billion.

The improved performance was supported by the registration of 126,282 new taxpayers, who contributed Rwf15.4 billion in revenue.

RRA also recovered Rwf277.1 billion in domestic tax arrears and enrolled an additional 43,243 taxpayers in the Electronic Billing Machine system.

Business turnover increased by 23.7 per cent, while taxable corporate income rose by 22.9 per cent. The value of taxable imports increased by 29.6 per cent, and Pay As You Earn collections grew by 16 per cent.

PSF Chairman François Twagirumukiza reaffirmed the federation’s commitment to working with RRA to resolve outstanding concerns affecting businesses.

He said PSF would also promote self-regulation, voluntary tax compliance and responsible business practices among its members.

The talks took place as RRA works towards collecting Rwf4.640 trillion in central government taxes and Rwf165.9 billion in local government revenue during the 2026/27 fiscal year.

Together, the expected collections are projected to finance approximately 61.6 per cent of Rwanda’s Rwf7.796 trillion national budget.

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