The Macroeconomic Unit is also responsible for advising the Minister of Finance and Economic Planning on tax policy issues. Main roles of the Unit in this area are:
• Formulate tax policies to achieve economic policy objectives and evaluate its impact on both tax payer and the economy;
• Identify new avenues of widening the tax base and raise domestic revenues to finance government budget;
• Study and advice on the effect of tax policy measures on individuals, business and economy;
• Prepare annual and medium term revenue forecasts;
• Prepare quarterly and annual revenue performance reports;
• Draw up appropriate legal requirements for revenue collection and related legislation.
Purpose of the function
The unit develops and evaluates tax policies and legislation, monitors our tariff policies and those of EAC, and proposes new policies that will best serve the economy. In that process Macro unit also make sure that incentives and exemptions are granted in conformity with the national laws and international conventions.
Description of the function
The Unit analyses the impact of current and new tax laws and prepares explanatory statements.
The unit consults with different stakeholders on tax issues, enabling public input on policy options. All the tax policy related issues are submitted to the Tax Policy Committee (TPC) for consideration, analysis and inform decision-making taking into account distortions, income distribution and revenue effects of the tax system. The TPC is chaired by the Government Chief Economist whereas the Tax Policy Expert in Macroeconomic Policy Unit acts as Secretary of the committee. This committee comprises of representatives from different institutions including among others: Ministry of Finance and Economic Planning, Rwanda Revenue Authority, Ministry of Trade and Industry, Ministry of Justice, Rwanda Development Board, Private Sector Federation. In addition, any other institution may be invited to the TPC meetings depending on its expertise in the issue to be handled.
The committee normally meets on monthly basis. However, it may meet anytime when it is deemed necessary. The Ministry of Finance and Economic Planning through the Macroeconomic Policy Unit organizes and facilitates the meetings of the committee and follows up implementation of the recommendations.
For More information please visit Rwanda Revenue Authority