Rwanda Tax Revenue Exceeds FY 2025/26 Target
Rwanda Revenue Authority (RRA) said Wednesday it collected Rwf 3.956 trillion ($2.9 billion) in tax revenue during the 2025/26 fiscal year, exceeding its target by 4% as the country recorded increased economic activity and improved tax compliance.
The Rwanda Revenue Authority (RRA) had set a collection target of Rwf 3.795 trillion, but surpassed it during the year, according to Commissioner General Niwenshuti Ronald, who announced the figures at a press conference on July 8. Tax collections increased by 27.7% compared with the previous financial year.
Niwenshuti attributed the performance to greater willingness among citizens and businesses to meet their tax obligations, alongside economic growth that expanded Rwanda’s taxable base.
“Rwandans have increasingly understood their responsibility to pay taxes and to pay them correctly, as shown by the growing rate of voluntary tax compliance. In addition, economic growth contributed, as the economy grew by 11% when all quarters are combined. This expanded the tax base and increased tax revenues,” he said.
Taxes collected on behalf of local government authorities reached Rwf 137.9 billion, representing 102.4% of the target.
RRA also reported an increase in the number of registered taxpayers, with 126,282 new taxpayers added during the year. The new taxpayers contributed about Rwf 15 billion in revenue, while the authority recovered Rwf 277 billion in outstanding tax payments.
The increase in collections was supported by growth across several tax categories. Value Added Tax (VAT) revenue rose as sales increased by 23.7%, while taxable transactions subject to VAT grew by 59.2%. Corporate profits increased by 22.9%, employment income tax rose by 16%, and taxable goods processed through customs increased by 29.6%.
Niwenshuti said recent tax reforms also contributed to higher collections. Measures introduced under new laws were projected to generate Rwf 259.2 billion, but actual revenue reached Rwf 286.7 billion, achieving 110% of the target.
Rwanda targets Rwf 4.64 trillion in tax revenue for 2026/27
For the 2026/27 fiscal year, RRA has set a domestic tax collection target of Rwf 4.64 trillion, while taxes allocated to local authorities are expected to reach Rwf 165.9 billion.
The projected tax revenue is expected to finance 61.6% of Rwanda’s national budget, according to the authority.
Niwenshuti said fulfilling tax obligations plays an important role in supporting public services, national development and improving citizens’ welfare.
RRA’s compliance strategy for the new fiscal year will focus on expanding taxpayer registration, encouraging timely tax declarations and payments, and improving the accuracy and completeness of tax reporting.
The authority will prioritize sectors including manufacturing, transport and storage, information and communication technology, education, real estate, construction and tourism.
At customs, RRA said it will increase monitoring of importers handling goods considered to have a higher risk of tax non-compliance.
The authority will also continue efforts to expand taxpayer outreach, ensure businesses have and properly use Electronic Billing Machines (EBMs), and encourage consumers to request EBM receipts for purchases.
