New tax administration measures will be launched by the government to boost its revenues in the upcoming months, with a target of an overall increase of ten per cent in tax revenues.

These measures include Electronic Transaction Devices (ETDs), e-payments and e-filing to enhance efficiency and lower leakage of tax collections.

Beginning July 1, the government will begin implementing ETDs via a phased approach involving about 2,500 large and medium-sized retailers.

Ben Kagarama, Commissioner General of the Rwanda Revenue Authority, the government is presently undergoing the procurement of ETDs as preparation for the launch of the project.

“We are looking at purchasing about 2,000 units, though we are yet to establish the cost,” said Kagarama.

He said the improvements on the country’s tax administration will help the government achieve its revenue targets.

Tax collections are expected to make up 50 per cent of the tax revenue projection.

Domestic revenues are expected to rise from about 13.6 per cent of gross domestic product in the 2011/2012 fiscal year to about 14.8 per cent by 2014/2015, while direct taxes are projected to increase from Rwf175.8 billion (US$29.4 million) in 2010/2011 to Rwf199.9 billion (US$33.5 million).

“These reforms have to be implemented as soon as possible for us to meet our targets,” said Kagarama. “Achieving our targets will depend on how quickly we implement these reforms.”

The project will make Rwanda the third country in Africa to employ this technology, next to Uganda and Kenya.