Rwanda National Police

In many occasions we hear media reports about cross-border trade being conducted illegally and the negative consequences to the national economy through lost revenues, affecting legal businesses and eventually hampering general development of nations.

Rubavu of the Western Province is one of the border districts where smuggling remains rampant, according to Rwanda Revenue Authority (RRA) figures.

According to the Revenue Protection Unit (RPU), secondhand clothes and shoes, tomato sauce, beverages and assorted liquors are the leading types of merchandise being traded illegally across the border.

RPU is a Rwanda National Police (RNP) arm attached to RRA to fight smuggling and fraud, among others.

Figures from RPU indicate that last year, they seized over 75 tonnes of used shoes and clothes, over 2 tonnes of Kitenge—a cotton African fabric—9360 cartons of tomato sauce, 40, 000 liters of different liquors and 19, 000 liters of soft drinks. They also seized over 50 tonnes of smuggled rice in the same period.

Recovered taxes 

The report further indicates that over Rwf185 million in taxes and penalties were also recovered in Rubavu in the same period.

Statistics also show that from July 2017 to June 2018, RPU recovered taxes amounting to over Rwf595 million in Rubavu that would have been lost in smuggling and other fraudulent means.

Faustin Niyigaba, the acting Commissioner for Revenue Protection and Investigations department at RRA, recently said that used clothes and shoes top the list of smuggled goods in Rubavu and other border points, followed by the traditional fabrics (Kitenge), soft drinks, liquors and maize flour, among others.  

According to Niyigaba, over 122 tonnes of rice and maize flour, 1.7 tonnes of biscuits and over 22, 823 liters of cooking oils were impounded from smugglers between July 2017 and June 2018.

In the same period, he explained, they also impounded 603 bicycles, 270 motorcycles and 186 vehicles that were intercepted transporting smuggled goods.

*Community sensitization 

According to Marie Grace Uwampayizina, the Vice Mayor in charge of Economic Affairs for Rubavu, they have strengthened partnership with RPU and RRA to sensitize communities in the district especially those residing on the borderline, on dangers of illicit trade but also the impact of taxes to development.

She said the heavy traffic and frequent movement of people from either country facilitate some to be engaged in illegal trade, explained that people are always reminded of their responsibility to the nation which among them is to pay taxes to enhance development.

“We teach them how hospitals, roads, and schools, among others are built using taxes but also showing them that these taxes are paid by buyers not sellers; the latter acts like an agent between the public and the government,” Uwampayizina observed.

Implications on the economy 

Felix Shakisha, one of the traders in Rubavu narrated that illegal traders inconvenience their fair trade policies. “It becomes almost impossible to compete with the black market, which sells the same product below the market prices. They don’t pay taxes, leading to legitimate traders losing business.”

Dealing with fraud 

“Taxes benefit every citizen and if not paid there are serious consequences to the defaulters including heavy fines and losing your goods; traders should duly fulfill their tax obligations to avoid any inconveniences,” said Niyigaba.

By law, seized smuggled goods and the vehicle or motorcycle used in smuggling are auctioned, while the driver is handed a fine of US$5000.

Law enforcement 

Chief Supt. Alphonse Businge, the Commanding Officer (CO) for RPU said that they have marked all porous border entry points used by smugglers and work with the public to identify common tricks used by tax defaulters, which facilitates successful operations.

“We work with the Revenue Investigation and Protection department as well as District Police Units to amount roadblocks and snap-checks, searches and surveillance to recover the monies that otherwise would have been lost through fraudulent businesses,” said CSP Businge.

The establishment of RPU was formalized in October 2012 to collaboratively control and manages tax collection in accordance with the law.

Other functions include fighting against corruption within the Revenue Services, minimizing fraudulent acts, protecting government revenue, improving efficiency of revenue collection and heightening public awareness of the effects of fraud.

The CO said that they have offices at all entry points to detect evasion and concealment, and under-declaration or forgeries.