Another Way of Assessing Size of Rwandan Economy

First, good news. Some Rwanda government departments have credible statistics. The Central Bank (BNR) and Rwanda Revenue Authority (RRA) have excellent data.

In this case, I use RRA statistics to shed light on the size of Rwanda’s economy.

TAXPAYERS IN RWANDA

First, RRA defines taxpayers as follows:

1) Micro-enterprise: any business activities with turnover of or less than Rwf12million per year (US$17,647 at current exchange rate of $1=Rwf680);

2) Small taxpayer: turnover of between Rfr12-50 million (US$17,647-73,529);

3) Medium taxpayers: turnover of Rwf 50million to Rwf1billion (US$73,529-1.4million);

4) Large taxpayers are those with an annual turnover of over Rwf1billion (US$1.4million);

WHO PAYS WHAT TAX?

By end June 2013, Rwanda had a total of 113,198 taxpayers who fell in the following categories:

* 354 (or 0.3%) were large taxpayers;

* 1,928 (or 1.7%) were in medium category;

* 110,916 (or 98.0%) were in micro and small taxpayers category.

HOW MUCH TAX WAS COLLECTED IN 2013?

Total revenue collected was Rwf677 billion which is US$995million;

SO WHAT DOES ALL THIS MEAN?

Rwanda’s economy remains very tiny. Evidence?

* Only 0.3% of taxpayers (354 large taxpayers) paid 64% of all taxes in the country in 2013!

* A huge majority of taxpayers in Rwanda (98%) are micro and small!

David Himbara