Speaking to the media after the meeting, Minister of Finance and Economic Planning, Yusuf Murangwa, explained the government's decision to adjust taxes. He emphasized that taxes play a crucial role in national development.
'For a country to develop, we need financial ability, and that comes from taxes. These are fair and realistic taxes that people can afford,' he said.
He clarified that the tax changes will not all take effect immediately but will be implemented over a period of four years until 2029. The main goal, he said, is to reduce dependence on foreign aid while strengthening the country's economy.
The new tax reforms fall into three categories. The first involves existing taxes where certain exemptions are being removed. For example, VAT exemptions on electronic devices like phones and computers were introduced to encourage digital adoption. Since nearly 80% of Rwandans now own phones, the exemption is being lifted.
The second category includes tax increases on certain products like cigarettes and alcohol. The third category introduces a digital services tax on platforms like Netflix and Amazon, which Rwandans access from abroad.
The government believes these changes will boost revenue while ensuring fairness in taxation. 'Not all these taxes will be felt at once, but they will help us build a stronger and more self-reliant economy,' Murangwa added.
With these measures, Rwanda is taking firm steps toward financial independence, ensuring sustainable growth without over-reliance on external funding.
Jacqueline Mutesi, a bar owner in Gitega Sector, Nyarugenge district expressed uncertainty on how the new tax plan rolls out in the coming days during its implementation.
"We are not sure if our client will stop coming through if the price of the beers increases. We will just wait to see what happens," she said.
Meanwhile, pressing security concerns, particularly the recent fighting in Goma, Democratic Republic of the Congo, and its effects on Rwanda were also discussed and the government expressed condolences to the families of the 16 civilians from Rubavu District who lost their lives when shells landed on Rwandan territory.
Additionally, the Cabinet reviewed the government's efforts in assisting those who fled the conflict, including facilitating the transit of United Nations (UN) staff members from Goma.
The meeting also considered the outcomes of the February 8, 2025, gathering of Heads of State from the East African Community (EAC) and the Southern African Development Community (SADC), which reaffirmed a political resolution as the preferred approach to addressing the instability in eastern DRC.
The performance of the 2025A agricultural season was also reviewed confirming strong yields driven by increased farmer participation and strategic government interventions. It was noted that the use of climate-resilient crops, improved harvesting methods and better storage facilities significantly boosted productivity.
Finally, the Cabinet approved two major policies aimed at driving national development. The Energy Policy and the National Urban Planning Policy.
Sam K Nkurunziza
Source : https://en.igihe.com/news/article/gov-t-rolls-out-new-tax-plan-to-drive-self-sufficient-economy
