Medium Term Revenue Strategy - The roadmap for reforming Rwanda’s taxation system and mobilising domestic revenue - Abel NTEGANO

Medium Term Revenue Strategy The roadmap for reforming Rwanda’s taxation system and mobilising domestic revenue Abel NTEGANO Ministry of Finance and Economic Planning Outline •Introduction • Taxes in Rwanda • Tax trend in Rwanda • The Medium-Term Revenue Strategy : • Purpose • Objective of MRS • MTRS Reform Proposal • MTRS Time line • Conclusion Introduction • The Medium-Term Revenue Strategy sets. [...] • Covering the period FY 2021/22 to FY 2023/24, the MTRS lays the foundation to achieve upper middle-income status by 2035 and high-income status by 2050. [...] Taxes in Rwanda VAT (31.8%) PAYE (22.8%) Profit (22.8%) Excise (12.2%) Customs (7.4%) Source: RRA Tax Statistics 2021 Other (3.0%) RwF 1,887.2 bn Total Revenue collection 21/22 Source: RRA Tax trends in Rwanda • Stability of PAYE and VAT shares • Reduction of excise and Customs duties shares • Growth of profit taxes share Source: Minecofin/RRA Need for fiscal consolidation And this is before we ha. [...] What is the purpose of a MTRS? To choose the medium-term objectives of the tax system and (broadly) how to reach them 1. [...] • Fiscal consolidation SDGs • Revenue objective: raise tax-to-GDP ratio by 1 percentage point between FY21/22 and FY23/24 • Four guiding principles: Efficiency Equity Simplicity Support the Economy Minimize cost & Fair system: those who can Improve ease of Support economic administrative burden pay more do compliance Source: MTRSr perceosevnetarytion to stakeholders 2021 How will the revenue targe.