Challenges of climate change on revenue collection performance in Rwanda: A case of Rwanda Revenue Authority

High revenue collection performance is essential for enhancing efficiency in service delivery and fostering economic development at the county level. However, numerous studies indicate that many countries encounter significant challenges in their revenue collection efforts. The main purpose of this study was to investigate the effect of climate change challenges on revenue collection performance in Rwanda. Specifically, this study assesses the effect of loss of biodiversity on revenue collection performance in Rwanda, evaluates the effect of generation of hazardous and solid waste on revenue collection performance in Rwanda, and evaluates the effect of natural resource depletion on revenue collection performance in Rwanda. This study is guided by optimal tax theory, waste management theory, and resource depletion theory. The research utilised a descriptive research design. The study population consists of 791 employees from various departments within the RRA and a sample size of 89 respondents. This study utilised primary instruments such as a questionnaire. This study employed a quantitative research approach, utilising both descriptive and inferential statistics to analyse data. The results show that overall, a very high mean of 4.14 for combined statements indicates an overall very strong positive agreement that there is an effect of biodiversity loss on revenue collection performance, with a standard deviation of 0.903, signifying some variety in responses among respondents. In addition, the overall very high mean score of 4.20 for the blended statements deliberates an overall very strong positive agreement that there is an effect of the generation of hazardous and solid waste and revenue collection performance, with the standard deviation of 0.879 designating some variability in opinions, and the overall high mean of 3.98 for the combined statements indicates an overall strong positive agreement that there is an effect of natural resource depletion on revenue collection performance, with a standard deviation of 1.070, signifying some variety in responses among respondents. The study outlines recommendations for the Rwanda Revenue Authority (RRA) to enhance revenue streams from eco-friendly industries and enforce environmental regulations. The suggestions include supporting renewable energy and sustainable agriculture, promoting green public procurement, integrating environmental considerations into tax policy, and fostering collaboration among government agencies to ensure a cohesive approach to sustainability and revenue generation.