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!