Effect of Electronic Tax System on Tax Collection Performance in Rwanda: A Case of Musanze District (2018-2021)


  • Flora Catheline Hakorimana University of Kigali, Rwanda
  • Dr. Daniel Twesige University of Kigali, Rwanda




This research evaluated the impact of the electronic tax system on tax collection performance in Musanze District, Rwanda. Specifically, this study aimed to examine the effect of electronic tax filing on tax collection performance in Musanze District; to evaluate the effect of electronic tax payment on tax collection performance in Musanze District and to determine the effect of electronic billing machines on tax collection performance in Musanze District. The study adopted a correlational research design. The target population included registered taxpayers in Musanze District. A sample of 100 respondents was selected by a simple random sampling technique. Data collection process involved structured questionnaires and documentary review. Data were analysed employing both descriptive and inferential statistical analyses. The response rate was 97%. The findings reveal a positive influence of electronic tax filing, electronic tax payment, and Electronic Billing Machines (EBMs) on tax collection performance, emphasizing their convenience, efficiency, and accuracy, which lead to reduced compliance costs, increased taxpayer compliance, and augmented government revenue collection. Correlation analyses demonstrate significant positive relationships between the adoption of electronic systems and tax collection performance, highlighting the potential for increased tax revenue as these systems gain popularity. However, concerns related to data security (Mean=3.82, SD.=0.595), limited familiarity (Mean=2.86, SD.=1.000), and personal usage issues (Mean=2.57, SD.=0.853) are evident, underscoring the need for awareness campaigns and user-friendly interfaces. Despite these challenges, the study emphasizes the potential of electronic tax systems to modernize tax submission, enhance efficiency, and promote voluntary compliance, contingent on addressing awareness and adoption barriers. Specifically, the findings regarding electronic tax filing indicate a strong correlation with tax collection performance (r = 0.618, p = 0.039). Electronic tax payment also exhibits a positive relationship with tax collection performance (r = 0.764, p = 0.027), although participants express some dissatisfaction with payment options (Mean=2.90) and perceived effectiveness in reducing tax evasion (Mean=2.75). Similarly, EBMs are shown to reduce collection time (Mean=4.36), improve tax data accuracy (Mean=4.27), and increase confidence in tax compliance (Mean=4.00), but respondents express moderate satisfaction with operational aspects (Mean=2.71) and transactional capacity (Mean=2.65). Findings indicated a positive and statistically significant linear relationship between electronic tax components and tax collection performance (R = 0.759, F-statistic=2.779, p = 0.001). Around 73.7% of tax collection performance variation is attributed to these variables (adjusted R square = 0.737).  However, respondents express moderate satisfaction with payment options and effectiveness in reducing tax evasion. The study recommends focused awareness campaigns, user-friendly interfaces, enhanced data security measures, diverse payment options, targeted training, and collaborations with financial institutions for seamless integration.

Key words: Electronic Tax System, Electronic Tax Filing, Electronic Tax Payment, Electronic Billing Machines, Tax Collection Performance.

Author Biographies

Flora Catheline Hakorimana, University of Kigali, Rwanda

Master of Accounting and Finance, University of Kigali, Rwanda

Dr. Daniel Twesige, University of Kigali, Rwanda

Senior Lecturer, University of Kigali, Rwanda


Ajayi, E. O., & Oyeniyi, Y. (2021). Impact of Electronic tax Filing on Tax Revenue Generation in Nigeria. Global Journal of Accounting, 7(1), 25-36.

Babatunde, D. A., & Akinsanmi, F. J. S. (2021). Impact of electronic tax on revenue generation in Nigeria. KIU Interdisciplinary Journal of Humanities and Social Sciences, 2(2), 302-312.

Bloomfield, R., Guinn, A., Hales, J., & Lawrence, S. (2019). Research design. In A. Lawrence & B. Stienecker (Eds.), Research Methods for Public Administrators (pp. 35-58). Routledge.

Engeström, Y. (2015). Learning by expanding. Cambridge. Cambridge University Press.

Fishbein, M., & Ajzen, I. (1975). Belief, Attitude, Intention, and Behavior: An Introduction to Theory and Research. Addison-Wesley. Reading, Mass.

Hardman, J. (2005). Activity theory as a potential framework for technology research in an unequal terrain. South African Journal of Higher Education, 19(2), 258-265.

Horn, P. (2013). Taxation of e-commerce. Journal of American Academy of Business, 2(2), 329-340.

Kothari, C. R. (2004). Research methodology: Methods and techniques. Kampala. New Age International.

Kovacev, R. (2019). Robots and Taxes. Challenges of effective taxation of artificial intelligence automation and Robotics. Ohio State Technology Law Journal, 16(1), 183-217.

Mandari, H., Koloseni, D., and Nguridada, J. (2017). ‘Electronic Fiscal Device (Efd) Acceptance for Tax Compliance among Trading Business Community in Tanzania: The Role of Awareness and Trust. International Journal of Economics, Commerce and Management, 3(3), 142–158.

Maisiba, G. J., & Atambo, W. (2016). Effects of electronic tax system on the revenue collection efficiency of Kenya Revenue Authority: A Case of Uasin Gishu County. Imperial Journal of Interdisciplinary Research, 2(4), 815-827.

Mlitwa, N. W. B. (2011). Integration of e-Learning System into Academic Programmes in Modern Universities: A South African Perspective. Cape Town: TVK e-innovations.

Mursu, A., Luukkonen, I., Toivanen, M., & Korpela, M. (2007). Activity Theory in Information Systems Research and Practice: Theoretical Underpinnings for an Information Systems Development Model. Information Research, 12(3), 201-2023

Vygotsky, L. S. (1978). Mind in society: Development of Higher Psychological Process. Cambridge, MA: Harvard University Press.




How to Cite

Hakorimana, F. C., & Twesige, D. (2024). Effect of Electronic Tax System on Tax Collection Performance in Rwanda: A Case of Musanze District (2018-2021). Journal of Finance and Accounting, 8(3), 68–80. https://doi.org/10.53819/81018102t2367