Effect of Electronic Tax System on Performance of Revenue Collection: A Case of Rwanda Revenue Authority Head Office

Cyuzuzo Ange Carine & Tarus Thomas
University of Kigali, Rwanda
https://orcid.org/0009-0007-0119-6657
Email: angecarine96@gmail.com

Abstract: The study assessed the effect of the electronic tax system on revenue collection performance at Rwanda Revenue Authority Head Office. The specific objectives were to assess the effect of electronic tax filing, analyse the effect of electronic tax billing, and determine the effect of electronic tax payment on performance of revenue collection of Rwanda Revenue Authority. A descriptive and explanatory research design was adopted. The target population consisted of 341 Rwanda Revenue Authority employees working in departments directly interacting with electronic tax systems, and a sample of 184 respondents was determined using the Yamane formula. Data were collected through structuredquestionnaires and analysed using descriptive statistics, Pearson correlation, and multiple regression analysis in SPSS. The response rate was 92.93%, with 171 valid responses. Findings showed that electronic tax filing had a positive and significant effect on revenue collection performance (B = 0.218, t = 3.460, p = 0.001), electronic tax billing had a positive and significant effect (B = 0.198, t = 4.950, p = 0.000), and electronic tax payment had the strongest positive and significant effect (B = 0.486, t = 7.147, p = 0.000). The model explained 80.5% of the variance in revenue collection performance (R² = 0.805, F = 228.481, p = 0.000). The study concluded that electronic tax filing, electronic tax billing, and electronic tax payment significantly improve revenue collection performance. It recommended deeper integration of electronic payment systems with mobile money platforms, stronger taxpayer education, advanced cybersecurity, and continuous technical support.