Abstract:
This study investigates the impact of tax compliance on socio-economic development in Rubavu District, Rwanda, over the period from 2020 to 2023. Taxation is a crucial mechanism for financing public goods and services, essential for achieving sustainable economic growth and development in African countries. Despite the progress made by the Rwanda Revenue Authority (RRA) since its establishment in 1997, tax compliance remains a significant challenge, particularly in low-income regions where issues of tax evasion and inadequate administrative capacity persist. This research aims to assess the level of tax compliance, identify factors influencing compliance, and evaluate the contribution of tax revenue to socio-economic development in the district.
Utilizing a mixed-methods approach, the study will collect quantitative data through surveys and qualitative insights through interviews with key stakeholders. The findings are expected to highlight the relationship between tax compliance and local economic growth, providing evidence to support the formulation of effective tax policies. The outcomes of this research will contribute to enhancing tax revenue mobilization strategies and improving socio-economic conditions in Rubavu District, with implications for broader tax administration practices in Rwanda and beyond.
Ultimately, this study seeks to inform policymakers and tax authorities about the challenges and opportunities in enhancing tax compliance. By identifying the socio-economic benefits of increased tax revenue, the research underscores the importance of establishing a fair and efficient tax system that promotes accountability and good governance. The insights gained could serve as a model for similar initiatives across the region, fostering a culture of compliance that underpins sustainable development and reduces reliance on external financial aid.
