RRA Partners with Mobicash to ease tax payments
In yet another move to ease tax payments, the country’s tax body has partnered with Mobicash, a financial transaction platform.
Through the partnership tax payers will be able to use the mobicash platform through their mobile phones or agents and pay taxes in a fast and convenient way, thus increasing tax compliance.
“Among other solutions we have implemented as Revenue Authority, Mobicash is putting us to another level,” said Richard Tusabe, Commissioner General of Rwanda Revenue Authority during the launch of the partnership on Wednesday.
He adds, “This partnership means that now Rwandans can pay taxes without leaving your home or your office.”
The Tax body has moved into use of technology to foster compliance as well as cutting down the tax collection cost that stands at 2.5 percent and is targeting at least 1.5- 2 percent cost of collection.
“The challenge we face in Africa is compliance of the tax payers, but that compliance has a big relationship with the cost of compliance,” Tusabe noted
Tax payers will be able to pay taxes through the platform where the money will be transferred instantly to tax body’s account.
Mobicash uses multi-factor authentication mechanisms such as Near sound data transfer-NSDT, fingerprint, Near Field Communication –NFC and Voice biometric technology, thus allowing it to overcome challenges of cashless payments.
“What makes our technology exciting is a broad range of applications it makes possible compared to services offered by incumbent banks and telecom companies in the mobile payment space,” said Pascal Nyagahene, chief executive Officer of Mobicash in Rwanda.
To pay through mobicash, a tax payer will access the e tax page, on mobicash, enter a reference number by revenue Authority and carry out a transaction, later confirm receipt of the successful transaction is sent.
Source: Rwanda Eye 16 September 2015