Effect of Tax Reform on Revenue Collection Performance in Rwanda: A Case of Rwanda Revenue Authority Headquarters
DOI:
https://doi.org/10.53819/81018102t2378Abstract
This study aimed to evaluate the effect of tax reforms on revenue collection performance at RRA. Specifically, the study examined the effect of tax policy reforms, administrative policy reforms, and technological tax reforms on the revenue collection performance at RRA. The study adopted a descriptive research design and targeted 90 employees of RRA. Data were gathered from 74 respondents selected by the purposive sampling technique. Data were gathered through questionnaires and documentary reviews and analyzed using both descriptive and inferential statistics. The coefficient of correlation (R) was found to be R = 0.6294. This implies that there was a positive and moderate correlation between tax reforms and revenue collection performance at RRA Headquarters. Moreover, the R2 (coefficient of determination) represented the measure of variability in the revenue collection performance. From the model, (R2 = 0.6738) shows that tax reforms account for 67.38% of the variation in revenue collection performance. This implies that, while keeping other factors constant, the adopted tax reforms explained the most of the share in the revenue collection performance under study. The study concluded that comprehensive tax reforms play a role in shaping revenue collection performance at the Rwanda Revenue Authority (RRA) Headquarters. By implementing reforms that encompass tax policy, administration, and technology, RRA and other tax authorities optimized revenue collection efficiency and effectiveness. The study recommended that RRA should continue to pursue comprehensive tax reforms that encompass tax policy, administrative, and technological aspects. A holistic approach to reform can lead to significant improvements in revenue collection efficiency and effectiveness.
Keywords: Tax reforms, Revenue collection performance, Tax policy reforms, Administrative policy reforms, Technological tax reforms
References
Alm, J. (2012). Measuring, explaining, and controlling tax evasion: lessons from theory, experiments, and field studies. International Tax and Public Finance, 19(1), 54-77.
Baer, M. K., & Silvani, M. C. (1997). Designing a tax administration reform strategy: experiences and guidelines. Geneve: International Monetary Fund.
Cuccia, A. (2013). The economics of revenue collection performance: what do we know and where do we go? Journal of Accounting Literature, 1(3),81-116.
Feld, L. P., & Frey, B. S. (2007). Revenue collection performance as the result of a psychological tax contract: The role of incentives and responsive regulation. Law & Policy, 29(1), 102-120.
Gurawa, Z., & Mansor, M. (2015). Tax administration problems and prospects: A case of Gombe State. International Journal of Arts and Commerce, 4(4), 27-36
Kanyinga, E. M. (2016). Effect of tax reforms on compliance with turnover tax among small and medium enterprises in Industrial Area, Nairobi.Journal of Economic Psychology, 2(2), 210-225
Kipkemoi, C. W. (2015). iTax system and service delivery by Kenya revenue Authority, Nairobi Stations. New Zealand Journal of Taxation Law and Policy, 17(1), 33-82
Kirchler, E., Muehlbacher, S., Kastlunger, B., & Wahl, I. (2010). Why pay taxes? A review of revenue collection performance decisions.Developing alternative frameworks for explaining tax compliance, 7 (5), 15-31.
Livoi, G. M. (2017). The effect of tax reforms on corporate revenue collection performance to Kenya Revenue Authority. International journal of business and social science, 4(11), 23-34.
Lubua, E. W. (2014). Influencing tax compliance in SMEs through the use of ICTs.International Journal of Learning, Teaching and Educational Research, 2(1), 23-36
Marti, L. O. (2010). Taxpayers’ attitudes and revenue collection performance behaviour in Kenya. African Journal of Business & Management, 7 (8), 112-122.
Munyoro, G. P. (2017). Effects of iTAX system on compliance of VAT payments by SMEs in Kenya: A case study of Wote Town in Makueni County, Kenya. International Journal of Management and Commerce Innovations, 5(1), 147-57.
Ng’eni, F. B. (2016). Tax administration in Tanzania: An assessment of factors affecting tax morale and revenue collection performance towards effective tax administration. International Journal of Finance and Accounting, 5(2), 90-97.
Nyamwanza, T., Mavhiki, S., Mapetere, D., & Nyamwanza, L. (2014). An analysis of SMEs’ attitudes and practices toward revenue collection performance in Zimbabwe.SAGE Open, 4(3), 34-38
Shehata, M. B., & Trivedi, S. K. (2005). Attitudes, incentives, and revenue collection performance.Journal of Finance and Taxation, 5(2), 78691.
Tresch, R. W. (2014). Public finance: A normative theory. Academic Press.
