Rwanda Income Authority (RRA) collected Rwf3,956.4 billion in taxes throughout the 2025/26 fiscal 12 months, attaining 104.2 per cent of its goal of Rwf3,795.4 billion.
The replace was introduced throughout a press convention held on July 8 at RRA’s headquarter.
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RRA Commissioner Normal Ronald Niwenshuti mentioned the income collected represents a 27.7 per cent enhance in comparison with the 2024/25 fiscal 12 months.
“Over the previous ten fiscal years, the Rwanda Income Authority has strengthened its collaboration with taxpayers and different stakeholders to advertise voluntary tax compliance,” he famous.
“By the Compliance Enchancment Plan, RRA engages taxpayers and stakeholders by figuring out compliance dangers, speaking them brazenly, and agreeing on acceptable actions to reinforce compliance,” he added.
Niwenshuti highlighted that native authorities income reached Rwf137.9 billion throughout the identical interval, attaining 102.4 per cent of the goal of Rwf134.6 billion.
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The Commissioner Normal clarified that the figures are preliminary, saying that the ultimate figures can be confirmed after the completion of the reconciliation course of.
“This sturdy efficiency displays beneficial macroeconomic circumstances, efficient tax administration, profitable implementation of tax coverage measures, and sustained enhancements in taxpayer compliance,” he famous.
Key drivers
Niwenshuti attributed the sturdy efficiency significantly to sturdy financial development, improved VAT efficiency, elevated company profitability and employment revenue, improved customs efficiency, and strengthened tax administration and compliance measures.
Throughout the first three quarters of the 2025/26 fiscal 12 months (July 2025–March 2026), actual GDP grew by 11.0 per cent, exceeding the projected 8.1 per cent, primarily pushed by development within the industrial and providers sectors.
Enterprise turnover elevated by 23.7 per cent, whereas the share of vatable gross sales rose from 52.3 per cent to 59.2 per cent, increasing the VAT base.
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Taxable revenue elevated by 22.9 per cent, in contrast with 1.9 per cent development within the earlier fiscal 12 months. Taxable employment revenue elevated by 14.6 per cent, whereas Pay As You Earn (PAYE) payable grew by 16 per cent.
Equally, there was an enchancment in customs efficiency, with the worth of taxable imports rising by 29.6 per cent, contributing to larger customs income.
As a part of efforts to develop the taxpayer base, RRA registered 126,282 new taxpayers, who contributed Rwf15.4 billion in tax income.
The authority mentioned it additionally recovered Rwf277.1 billion in home tax arrears via strengthened enforcement measures.
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To enhance VAT compliance and transaction traceability, 43,243 further taxpayers adopted Digital Billing Machines (EBMs). RRA mentioned it strengthened Company Earnings Tax compliance via enhanced system controls and proactive follow-up on unsupported bills, which improved the accuracy of tax declarations and decreasing underreporting.
The tax physique accomplished 1,883 tax audits, leading to further tax assessments and funds amounting to Rwf9.3 billion.
On the similar time, new tax coverage measures generated Rwf286.7 billion, representing 110.6 per cent of the Rwf259.2 billion goal.
Voluntary compliance
The VAT Reward Scheme, together with Tengamara na TVA and Tenga Promo, recorded important development. Registered individuals elevated from 74,964 in June 2025 to 1,096,931 by the tip of June 2026.
Invoices requested by individuals mirrored VAT output of Rwf105.8 billion, whereas Rwf4.2 billion in VAT rewards was paid to remaining customers throughout the 2025/26 fiscal 12 months.
RRA additionally intensified investigations and anti-smuggling operations. A complete of 163 investigation circumstances have been accomplished, leading to tax assessments amounting to Rwf21.4 billion.
As well as, 1,542 anti-smuggling operations led to assessments totalling Rwf29 billion.
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Joint EBM compliance campaigns performed with the Rwanda Nationwide Police lined the Metropolis of Kigali and 5 districts exterior Kigali. Greater than 12,000 taxpayers adopted EBMs, ensuing within the restoration of Rwf3 billion in penalties.
By knowledge analytics, RRA additionally recognized and blacklisted fictitious invoices. This course of prevented fraudulent VAT claims estimated at Rwf28 billion.
