Electronic Billing Machines Boost Revenues, Cut Evasion

September 9, 2014 Taxation in Rwanda

KIGALI – Electronic Billing Machines have proven to be useful in Rwanda, helping raise revenues while reducing the occurrence of tax evasion.

Over the weekend at a Tax Payers’ Day celebration in Kayonza the Commissioner General of the Rwanda Revenue Authority Richard Tushabe announced that the introduction of Electronic Billing Machines (EBM) in the country has directly resulted in a 16 percent increase to the levels of tax collections.

Currently, businesses in Rwanda earning more than RWF 20 million per year are required to use an Electronic Billing Machine to record all sales, removing any opportunity for businesses owners to not record sales and evade their tax obligations.

The electronic records created by the EBMs has also reportedly eased the process of auditing businesses suspected of evading their tax obligations, ensuring that the correct amounts of income taxes and Vat are being paid.

According to the Rwanda Revenue Authority’s own estimates, approximately 6 000 EBMs have already been installed in Rwanda, with another 1 000 scheduled to be installed soon.

The RRA currently forecasts that tax collections for the year will rise to RWF 906.8 billion in the current financial year, compared to a level of RWF 782.5 billion.

Photo By: kazuyuki yamamoto