The contributions of online tax payment system on revenue collection in Rwanda: A case of small & Medium enterprises (SMEs) taxpayers in Kicukiro district

Abstract

There is underutilization of online tax services in Rwanda despite the presence of electronic tax systems that was introduced by Rwanda Revenue Authority, where Information Technology (IT) allows government to serve citizens in a more timely, effective and cost-efficient way. The objectives of this study is to assess the role of mobile tax payment on revenue collection among taxpayers of RRA in Kicukiro District, Rwanda; to examine the contribution of Electronic Billing Machine (EBM) tax payment on revenue collection among taxpayers of RRA in Kicukiro District, Rwanda; to analyze the effect of e-tax payment on revenue collection in Kicukiro District, Rwanda. This research addressed the challenges for the taxpayers to efficiently adopt the e-tax systems to prevent extra wastage of time and money. The scope of this research takes a case of Rwanda Revenue Authority on revenue collection. It is in this regard that it identifies and discusses the challenges and elaborately suggests the possible solutions for successful implementation of online tax payment. This exploratory study elicited information using a structured questionnaire from respondents in taxpayers ‘services department. The results revealed that there is a relationship between online tax payment and revenue collection, because there is a relationship between Electronic Billing Machine (EBM) tax payment and tax compliance, between Electronic Billing Machine (EBM) tax payment and tax convenience, between Mobile Payment and tax compliance, between mobile tax Payment and tax convenience, between tax compliance and tax convenience which implies that online tax payment has impact on revenue collection among the taxpayers in Kicukiro District, Rwanda.