The Rwanda Revenue Authority (RRA) has collected more than Rwf3.956 trillion in tax revenue during the 2025/26 fiscal year, exceeding its target by 4% and highlighting the country’s strong economic growth and improved tax compliance.
The figures were announced during a press briefing on July 8, 2026, where RRA officials attributed the performance to increased voluntary tax compliance, economic expansion, and the implementation of new tax measures.
RRA Exceeds Revenue Target by Collecting Rwf3.956 Trillion
RRA Commissioner General Ronald Niwenshuti announced that the authority collected Rwf3.9564 trillion in domestic tax revenue during the 2025/26 fiscal year, surpassing the projected Rwf3.7954 trillion.
The collection represents 104% of the annual target and marks a 27.7% increase compared to the previous fiscal year.
In addition, taxes collected on behalf of local governments reached Rwf137.9 billion, achieving 102.4% of the planned target.
More Taxpayers Registered as Compliance Continues to Improve
According to Niwenshuti, Rwanda registered 126,282 new taxpayers during the fiscal year, generating approximately Rwf15 billion in tax revenue.
The authority also recovered Rwf277 billion in outstanding tax arrears, further boosting government revenues.
He said the strong performance reflects a growing culture of voluntary tax compliance among Rwandans, combined with sustained economic growth.
Niwenshuti said: “Rwandans have increasingly embraced their responsibility to pay taxes and to comply with tax obligations properly, as reflected in the continued rise in voluntary tax compliance. Secondly, the country’s economic growth has also played a significant role. Overall, the economy expanded by 11% across all quarters, which broadened the tax base and consequently increased tax revenues,”
VAT, Corporate Tax and Customs Revenue Record Strong Growth
The Commissioner General noted that Value Added Tax (VAT) collections increased significantly, driven by a 23.7% growth in business transactions, while VAT-taxable sales rose by 59.2%.
Corporate profits increased by 22.9%, resulting in higher corporate income tax collections, while Pay-As-You-Earn (PAYE) tax revenue grew by 16%.
Meanwhile, the value of taxable goods processed through customs increased by 29.6%, reflecting higher import activity.
Niwenshuti added that newly introduced tax measures also outperformed expectations. While RRA had projected to collect Rwf259.2 billion from the new tax laws, actual collections reached Rwf286.7 billion, representing 110% of the target.
Taxes to Finance More Than 61% of Rwanda’s 2026/27 Budget
Looking ahead to the 2026/27 fiscal year, RRA aims to collect Rwf4.64 trillion in domestic tax revenue.
Taxes allocated to local governments are projected at Rwf165.9 billion, while domestic tax revenue is expected to finance 61.6% of Rwanda’s national budget.
Niwenshuti said:”This demonstrates the crucial role that tax compliance plays in improving citizens’ welfare and advancing Rwanda’s socio-economic development,”
RRA Targets Key Sectors to Strengthen Tax Compliance
To achieve its revenue targets, RRA will prioritize expanding taxpayer registration, encouraging timely filing and payment of taxes, and improving the accuracy and completeness of tax declarations.
Compliance efforts will focus on sectors including manufacturing, transport and logistics, information and communication technology (ICT), education, real estate, construction, and tourism.
In customs administration, the authority plans to intensify monitoring of importers dealing in high-risk goods to reduce tax evasion.
RRA will also continue strengthening taxpayer education, ensuring all eligible businesses use Electronic Billing Machines (EBMs) correctly, and encouraging consumers to always request EBM receipts after making purchases as part of efforts to improve transparency and tax compliance.
