Rwanda shuts down two radio stations in massive tax defaulting crackdown

OFF AIR: Contact FM, one of the pioneer private radio stations in Rwanda has been closed due to failure to pay taxes

OFF AIR: Contact FM, one of the pioneer private radio stations in Rwanda has been closed due to failure to pay taxes

Rwanda Revenue Authority (RRA) and Kigali City Council have closed two of Rwanda’s most popular radio stations over failure to pay taxes.

City Radio and Contact FM were among the companies whose doors were sealed off Wednesday in a tax evasion crackdown mounted by Kigali city tax officials.

One of the radio bosses, Albert Rudatsimburwa, the proprietor of Contact FM reacted furiously to the closure by lashing out RRA officials for taking the stern measure

He said that he was in process of paying the taxes and had already made some payments.

Rudatsimburwa revealed he had paid Rfw 20 million out of the staggering Rwf140 million tax arrears his company owes RRA.

RRA officials abstained from releasing the exact amount of tax arrears which Contact FM has to pay, however maintained that Contact FM tax arrears were double that claimed by the radio proprietor.

Rwanda’s auditor general’s report 2015 has put Rwanda Revenue Authority in the spotlight for mismanagement of funds, corruption and lack of accountability.

The tax officials said that the crackdown is in line with efforts to bring to book all tax evaders. In 2014, a list of 103 tax defaulters in Kigali was released and some of the media houses topped the list.