Effect of Tax Reform on Revenue Collection Performance in Rwanda: A Case of Rwanda Revenue Authority Headquarters

This study aimed to evaluate the effect of tax reforms on revenue collection performance at RRA. Specifically, the study examined the effect of tax policy reforms, administrative policy reforms, and technological tax reforms on the revenue collection performance at RRA. The study adopted a descriptive research design and targeted 90 employees of RRA. Data were gathered from 74 respondents selected by the purposive sampling technique. Data were gathered through questionnaires and documentary reviews and analyzed using both descriptive and inferential statistics. The coefficient of correlation (R) was found to be R = 0.6294. This implies that there was a positive and moderate correlation between tax reforms and revenue collection performance at RRA Headquarters. Moreover, the R2 (coefficient of determination) represented the measure of variability in the revenue collection performance. From the model, (R2 = 0.6738) shows that tax reforms account for 67.38% of the variation in revenue collection performance. This implies that, while keeping other factors constant, the adopted tax reforms explained the most of the share in the revenue collection performance under study. The study concluded that comprehensive tax reforms play a role in shaping revenue collection performance at the Rwanda Revenue Authority (RRA) Headquarters. By implementing reforms that encompass tax policy, administration, and technology, RRA and other tax authorities optimized revenue collection efficiency and effectiveness. The study recommended that RRA should continue to pursue comprehensive tax reforms that encompass tax policy, administrative, and technological aspects. A holistic approach to reform can lead to significant improvements in revenue collection efficiency and effectiveness.