Another Way of Assessing Size of Rwandan Economy

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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

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