Cashless Economy and Efficient Tax Collection: Case Study- Rwanda Revenue Authority and Rwanda Mobile Telephone Network (MTNR)

Isingizwe Remige
Adventist University of Central Africa, Rwanda
Email: isiremige@gmail.com

Received December 4, 2019; Revised February 22, 2020, Accepted February 26, 2020

Abstract: The cashless economy is the way of making sales transactions via electronic means. According to BNR, (2018), in its report “Rwanda Payment System Strategy , towards a cashless Rwanda 2018-2024”, The Rwanda National Payment System (RNPS) Strategy 2018 – 2024 reaffirms the commitment of the National Bank of Rwanda and the Ministry of Finance and Economic Planning to encourage the use of electronic payments by all residents of Rwanda , to achieve a cashless society. It is for this reason the researcher was interested in finding out the contribution of cashless economy on efficient tax collection by using stratified and purposive sampling technique of sampling. By gathering and analyzing the answers from 180 distributed questionnaires among Rwanda Revenue Authority (RRA) employees and MTNR Mobile Money (MoMo) Pay section employees, the researcher verified the null Hypotheses H01: the cashless economy does not play a significant role on tax collection transparency, H02: The cashless economy does not play a significant role on the tax declaration., H03: the cashless economy does not contribute to quality auditing, H04: The cashless economy does not play a significant role on Tax Revenue Increase. The multiple regression analysis method was used for data analysis and the test of hypotheses proves that the cashless economy has a positive impact on efficient tax collection . Therefore , it is recommended to enhance and educate the population the adoption of cashless economy in order to experience an efficient tax collection in Rwanda.