This provides services for the public sector of Rwanda;
Government Revenue of Rwanda
Regulatory framework for tax system
The Ministry of Finance and Economic Planning (MINECOFIN)
The Ministry of Finance and Economic planning is responsible for sustainable growth, economic opportunities and living standards of all Rwandans.
The ministry is also responsible for establishing and monitoring the highest standards of accountability and transparency in public finance management.
Rwanda Revenue Authority
The Authority is also responsible for revenue collections and advice. The authority has roles which include; designing and conducting comprehensive taxpayer education programs and handle tax payers complaints.
Taxation Policy in Rwanda is focused on widening the tax base to increase fiscal revenues especially focusing on registering the informal sector, simplifying procedures and providing tax incentives to encourage both FDI and domestic investment.
Sources of Revenue
The government gets its revenue from the following sources;
- Grants from donors
- Dividends from government investment
- Interests income from government investments
- Grants/loans from donors
Challenges Faced in Raising Revenue
The challenges in raising revenue include the following;
- Rwanda is still losing revenue through transfer pricing schemes operated by some multinationals.
- The operations of Rwanda Revenue Authority are not yet fully streamlined to avoid any duplication of roles and responsibilities.
- The Rwanda Revenue Authority and the tax policy tend to focus on large on large tax payers.
- Limited tax base and most operators in commerce and agriculture sector are not captured.
- Limited capacity in terms of human resources and equipment at Rwanda Revenue Authority
- Making the public aware of its responsibility to pay taxes in order to receive public services.
- Simplifying the tax system so that it is simple for all to comply with.
- Simplifying accountability by the government so that the public can link the taxes paid to the services received.
Government of Rwanda (GoR) views Public Private Partnerships (PPPs) as an essential tool for promoting the development of quality infrastructure assets and related services in the public domain.
PPP in Rwanda is summarised as below;