Challenges in collecting taxes

The following are challenges met in collecting taxes;

  • The country has a small tax base to collect taxes from
  • Low tax paying culture
  • Large informal sector which has not yet been brought within the tax bracket
  • Ignorance of the low especially among the small business enterprises
  • The economy of Rwanda is majorly subsistence economy with households producing mainly for own consumption
  • The standard of keeping financial records in still low and mainly manual.