Rwanda's Business Registration Reforms as a Model for Tax Base Expansion

TLDR

• Rwanda’s business registration reforms demonstrate how simpler procedures can encourage business formalisation and improve revenue collection.
• When businesses delay expansion or remain informal, fewer jobs are created, and governments collect less tax revenue over time.
• A broader tax base begins with bringing more businesses into the formal economy.
• Local governments and business registration agencies should also conduct public awareness campaigns to help entrepreneurs understand the benefits of formalisation.
• Expanding the number of registered businesses creates a larger and more sustainable tax base without increasing tax rates.