RRA seeks wider tax base to end aid dependence

President Paul Kagame is expected to be the chief guest  during Taxpayers’ Day at a function today at the Rwanda Revenue Authority (RRA) headquarters in Kimihurura, Kigali.

This year, the day will be held under the theme, “Promoting tax compliance, collective responsibility.”

The government has over the years devised ways to increase its tax base in order to enlarge the tax basket.

Without necessarily increasing the tax burden, RRA has strongly campaigned against tax evasion and avoidance practices, as well as awarded the most tax compliant companies and individuals. This is geared at encouraging compliance.

During today’s function, about 25 large, small, and medium taxpayers will be recognised for their contribution to national development.

Also to be recognised are RRA partners, who assist in collection of taxes and tax awareness campaigns. This category includes journalists and security agents involved in fighting smuggling.

This drive has significantly paid off, as reflected in the growing figures in tax collection.

Tax revenue mapping

Rwanda’s total revenue collection has increased by more than five times in the last ten years, from Rwf68.4 billion in 1998 to Rwf344 billion in 2008.

This figure has since doubled to Rwf665.8 billion collected between July 2012 and June 2013.

The revenue body announced in July that it had surpassed its target for the second year in a row, remitting to the national treasury Rwf675 billion during the 2012/2013 financial year. This is Rwf22 billion above the target set by the Ministry of Finance and Economic Planning.

About 60.2 per cent of the 2013/14 financial year Budget is being financed by locally-raised funds. This can be explained by the fact that although taxes increased, the National Budget also increased significantly from Rwf1.1 trillion in 2012 to Rwf1.5 trillion in 2013.

In past interactions, RRA Commissioner General Ben Kagarama has insisted that challenges to revenue collection cannot be addressed by increasing domestic taxes fees but rather, reaching out to the many incompliant but profitable companies, most of them micro, small-and medium-sized enterprises.

These make up 90 per cent of the businesses in Rwanda. As a result, Rwanda’s domestic tax regime has mostly remained unchanged–a commendable and brave stance taken by RRA.

Since 2005, corporate income tax and personal income tax have been fixed at a rate of 30 per cent, while intermediate business owners are charged a lump sum of four per cent on their annual turnover.

Other taxes such as Pay as You Earn (PAYE) stand at 15 percent and 30 percent for casual employees and employers respectively.

Value added tax (VAT) stands at 15 per cent of all taxable goods and services, while consumption tax on local excisable goods ranges between 10 per cent, such as on water products and 130 per cent on cigarettes.

Generally, what has been changing and evolving isn’t the tax rate but the tax infrastructure, which is now well modernised and automated to simplify tax procedures and attract more clients into the net.

Some notable innovations include the electronic billing equipment that is slowly but surely replacing tax auditors, especially in small and medium companies that earn less than Rwf50 million annually.

These machines introduced by RRA are installed at business premises to automatically calculate VAT owed by businesses to the tax authority.

They are supplemented by the Mobile Declaration platform, which was introduced this year to aid taxpayers in declaring and paying taxes using mobile phones.

Such innovations have significantly eliminated inefficiencies like the long paperwork procedures and long queues at tax offices. This has attracted many tax payers, whereby in June, 400 big tax-payers and 1,800 SMEs were using automated tax platforms.

Recognition

As a result, a World Bank report in September recognised Rwanda as the most tax compliant nation in East Africa. The Bank said Rwanda is the easiest country to pay taxes in the region with just 17 payments made annually. In comparison, Burundi makes 25 payments, Uganda 31, Kenya 41 and Tanzania 48.

The report also ranked Rwanda as the 25th most tax-compliant country in the world.

The role of investment promotion in expanding tax base is also crucial. The government has invested heavily in marketing Rwanda as an investment destination.

Kagarama said ahead of today’s event that the tax body will continue conducting awareness campaigns to educate the public, especially small-and-medium enterprises, on the importance of timely payment of taxes.

RRA seeks wider tax base to end aid dependence

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Geothermal key in Rwanda Green Growth and Climate Resilience Strategy

 

Geothermal energy plays an important part in the Green Growth and Climate Resilience Strategy of Rwanda in Eastern Africa., particularly as it would decrease the country’s reliance on imported foreign oil.

In a Climate and development Outlook for the country of Rwanda, the Climate and Development Knowledge Network reported on the country’s efforts on a climate change strategy.

The government of Rwanda has developed a a climate change strategy and established an environmental fund, providing a strategic pathway for tackling climate change

and a mechanism to finance its implementation. Both are products of sustained efforts to integrate climate compatible development into core development policies.

The international community has also signalled its support of Rwanda’s approach. In June 2013, Rwanda’s Fund for Environment and Climate Change (FONERWA) obtained financing from the British International Climate Fund (ICF) to the value of GBP22.5 million ($36 million), making it the largest demand-based climate fund in Africa.

Rwanda has been enjoying an annual GDP growth averaging 8.5 percent over the past five years. In its Vision 2020, a growth plan for the economy, Rwanda is looking at a transformation of the country from a subsistence-agricultural economy to a knowledge-based, middle-income economy by 2020. However, the issue of climate change represents a major threat to the economic prospects of this small, landlocked and densely populated nation.

“The 2009 Economics of Climate Change in Rwanda study found that climate change is likely to cost 1% of GDP per year by 2030. Climate change will increasingly take a toll on agricultural production, energy generation, water resource management and public health. Agriculture employs 80% of the population, and hydropower accounts

for 55% of installed generation, making both these sectors particularly vulnerable.”

“As an oil importer, Rwanda is also sensitive to oil price spikes. Moving to renewable energy sources would provide domestic energy security, reduce greenhouse gas (GHG) emissions and provide a major boost to the economy, as payments abroad for oil are replaced by local expenditure for energy production and other development needs.”

So in 2011, the country developed a Green Growth and Climate Resilience Strategy after an intensive nine month strategy development phase.  In this strategy, ways are proposed to integrate “adaptation and mitigation actions across all sectors of the economy, focusing on the socio-economic development and future prosperities of Rwandans.”

Geothermal Energy

The strategy highlights seven ‘Big Wins’ and 14 ‘Programmes of Action’ that will transform Rwanda’s economy into a climate resilient and low carbon economy. ‘Big Wins’ are identified as initiatives offering the biggest return on investment, affecting the whole economy over the long term. They include development of Rwanda’s geothermal energy reserves, integrated soil fertility management, and a robust and climate resilient road network.

Geothermal energy, in particular, could provide greater economic stability through decreased reliance on foreign oil imports. Only 16% of Rwandans are currently connected to the energy grid (up from 6% in 2008). An estimated geothermal potential of 700MW could exceed domestic electricity demand by 2020, if exploited. ‘Programmes of Action’ address the most important areas of work that are likely to succeed. These include integrated water resource management, sustainable land-use management, and a low carbon energy grid.

Central to the strategy’s success will be building the relevant capacities for implementation within key economic sectors and across levels of government. The strategy’s alignment with national development goals in Vision 2020 and Rwanda’s medium term development plan, the Economic Development and Poverty Reduction Strategy (EDPRS), bodes well for its future. The strategy is also a signal to the international community that the GoR is preparing the national economy to take advantage of global green growth. The Minister of Natural Resources, Stanislas Kamanzi noted: “It is the responsibility of each nation to find the best way, to adapt, to adjust, and to find a solution that does not compromise sustainable development.

In August 2013, the country launched the drilling campaign to explore its geothermal potential, focusing on the drilling of three exploration wells at the slopes of Mt. Karisimbi in Kabatwa Sector, Nyabihu District., as reported on ThinkGeoEnergy this summer.

Geothermal key in Rwanda Green Growth and Climate Resilience Strategy

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RSE share index unchanged at end of trading week

 

Today on RSE, the market recorded 390,400 Bralirwa shares valued at Rwf 322, 860,800 in eight deals compared to the previous trading session which recorded 115,900 BoK shares that were valued at Rwf 22, 253,100 in three deals.

The RSE share index (RSI) remained unchanged compared to the previous trading session of 218.19 BoK and Bralirwa counters, remained unchanged from the previous closing prices of Rwf 195 and Rwf 827 respectively.

Bralirwa shares traded and closed at Rwf 827 whereas BoK counter was quiet with no shares recorded. KCB shares last transacted at Rwf 175 while NMG and Uchumi Supermarket shares last transacted at Rwf 1,200 and Rwf 175 respectively.

At the end of formal trading hours, there were outstanding offers of 646,400 BoK shares between Rwf 195-209 and outstanding bids of 1,581,700 shares between Rwf 185-192. On Bralirwa counter, there were outstanding offers of 202,300 Rwf 827-890 and no outstanding bids. On KCB counter; there were outstanding bids of 12,400 shares between Rwf 175-180 and no outstanding offers. On NMG counter; there was an outstanding bid of 1,000 shares at Rwf 1,200 and no outstanding offers. This week the RSE market activity was higher compared to the previous week’s trading session.

The total turnover for this week was Rwf 371,324,200 from 233,400 BoK shares and 394,900 Bralirwa shares traded in twenty seven deals compared to the last week’s trading session which recorded a total turnover of Rwf 189,274,500 from 544,200 BoK shares and 103,200 Bralirwa shares traded in twenty seven deals.

RSE share index unchanged at end of trading week

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Nyamagabe: setting strategies to avert hunger and drought

The JADF meeting

 The Joint Action for Development Forum (JADF) in Nyamagabe District met to come up with strategies to prevent hunger in the near future.

According to a meeting on Tuesday 29^thOctober 2013, the move follows the shortage of rainfall that threatens to affect crop production in this season 2014A.

JADF is going to help farmers to irrigate their crops in possible places especially crops being grown in wetlands and valleys by providing irrigating tools. They will also provide vegetables seeds to support the crop production.

“Every organization partner agreed on what they will do to support this program. Some agreed to support the cooperatives by providing the basic irrigating tools in wetlands and valleys.

We are going to plant vegetables after harvesting sweet potatoes to have enough crop production and avert poverty” explained Immaculée Mukarwego Umuhoza the vice mayor for finance and economic development and the coordinator of JADF in the District

The coordinator of JADF in Nyamasheke also explained that among other strategies the JADF partners reached at, they include planting cassavas in the hilly areas because cassava can thrive even without rain and there is still time to grow it.

The JADF partners also agreed on helping their beneficiaries make vegetable gardens, giving them seeds to plant there and giving tools to help them water these vegetables.

If all these are followed up as agreed upon, Nyamagabe district might be able to avert hunger and poverty that is expected if rain does not fall sooner.

The strategies agreed upon by the JADF partners will be worked on as soon as possible and will be operational by the 10^th, 11, 2013. The district will make an evaluation program to see if every the agreed upon strategies were done as expected.

A team to do the evaluation was elected. Local leaders are being called upon to inform their people about this urgent program.

During the recent video conference that was aired to all district and chaired by the Ministry of Agriculture urged farmers to consider irrigation is the only way to avoid hunger when rain ceases to fall.

source:http://www.umuhinzi.com/weather/7263/nyamagabe-setting-strategies-to-avert-hunger-and-drought/

Nyamagabe: setting strategies to avert hunger and drought

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Rwanda MPs Recommit To Promotion Of Unity Among Rwandans

 Members of both chambers of the Rwandan Parliament started the annual retreat with a fresh call to Nation building and promotion of the Ndi Umunyarwanda (I am Rwandan) campaign aimed building a nation through open dialogue, trust and honest discussions about the nation’s history.

The retreat was opened by the Speaker of Parliament Chamber of Deputies; Hon. Donatille Mukabalisa said that as people’s representatives, they must set an example in upholding “Ndi Umunyarwanda” Programme that promotes unity of Rwandans.

The Prime Minister Pierre Damien Habumuremyi addressed the members of both parliaments at the two-day retreat kicked off on October 30^th, 2013 at Gabiro School of Infantry in Gatsibo District, Eastern province of Rwanda.

While making his presentation titled “Flashback on governance: The role of politicians in the destruction and construction of Rwanda”, Habumuremyi said Divisions and hatred sown by the regimes which succeeded one another after the colonial period are as a result of segregation and heinous ideology disseminated by colonialists many of whom being missionaries.

He however said that Rwanda has been blessed with good leadership today and stated that the current leadership promotes unity of Rwandans and puts forward all people’s interest irrespective of their would-be differences.

“The Programmes put in place to cater for Rwandans do not discriminate anyone; they constitute equal opportunities for all Rwandans” he said.

Rwanda MPs Recommit To Promotion Of Unity Among Rwandans

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Rusizi: imposing new measures against malnutrition

Leaders giving milk to children to fight malnutrition

 Every household in Nyakarenzo sector in Rusizi District should devise means of eradicating malnutrition related problems within a three months time, according to the Mayor of Rusizi District Oscar Nzeyimana

The mayor said this during the event to feed milk to the children in Nyakarenzo sector as one way of fighting malnutrition.

Mayor Nzeyimana emphasized that malnutrition should end; pointing that Rusizi is one of the districts that are economically developed and with plenty of food.

Agnes Uwanyirigira, a parent from Nyakarenzo sector commends the local leaders for advice saying malnutrition causes retardation and it’s brought about by residents’ ignorance.

Also parents are grateful for the school where they are trained on how to prepare balanced diet.

During the event, Ministry of local government (MINALOC) and Rwanda Local Development Support Fund (RLDSF) were recommended for providing milk to help children part with malnutrition.

Over 1000 children in the area have malnutrition symptoms but its hoped that with new measures, they will be cured in the period of six months since different sectors have come up to help fight the disease.

Rusizi: imposing new measures against malnutrition

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Kamonyi: LIFAM working with farmers’ to access markets

LIFAM leaders meeting with Kamonyi farmers

 The Project ‘Linking Farmers to Markets’ (LIFAM) that operates  in the Private Sector Federation in is to work with farmers and provide information on crop production increase while paving towards sustainable market for produce in Kamonyi District.

The project leadership said this during the meeting with farmers’ cooperatives in Kamonyi district on Tuesday 29^th, 10, 2013. In this meeting, farmers made known their farming limitations including low prices, poor working relations with financial institutions as well as lack of enough fertilizers.

For Betty Uwimana the coordinator of Impuyano Union for soya and cassava farmers’ cooperatives, the price at which farmers sell crops is too low for farmers to keep the activity going.

On the issue concerning banks and microfinance institutions that provide loans to farmers, Celestin Nsengiyaremye the chairperson of cassava farmers’ cooperative in Runda sector says banks need payback with interest rates just one month after giving out a loan.

“Apart from the Rwanda Development Bank (BRD), there is no any other bank that accepts the conditions of the farmers, to wait on paying the loan until the harvesting period. BRD also delays in providing the credit and sometimes farmers miss out the planting season.”

The farmers in Kamontyi District also discussed with LIFAM about the issue of fertilizers. In the past arrangement, farmers would get fertilizers in debts and pay it off with their harvest but now full payments are needed before they purchase fertilizers. This has reduced the use of fertilizers since few can afford the full purchase.

Dr. Livingstone Byamungu the coordinator of LIFAM project said the goal of this project is to connect and advocate for farmers to the concerned levels and ensure their limitations are solved.

LIFAM promised to help farmers in Kamonyi district have study trips to learn from other farmers, to get information on the right prices country wide, to connect farmers with financial institutions and advice them on being professional farmers.

Rwanda’s economy is based on agriculture with 70percet of Rwandans doing agriculture, yet people who invest in agriculture are still few.

In order to increase the number of people investing in agriculture in the second Economic Development Poverty Reduction Strategies (EDPRS2) the loans provided from banks to agriculture projects need to increase from 9percent to 18percent.

Kamonyi: LIFAM working with farmers’ to access markets

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