A ministerial order published by the Minister of Finance and Economic Planning on November 28 shows a reduction – from between Rwf0 and Rwf300 to between Rwf0 and Rwf80 per square metre – in new land tax rates.

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The order determines the standard rates and other criteria applied to set the tax rate per square metre of land.

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The reduction in land tax rates came after the public decried high taxes, a concern President Paul Kagame also reiterated in January.

The new land tax rates vary across different areas of the country depending on the class of the city, the level of development, where the taxable land is located, and the intended use of the taxable land.

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Kigali city

The government announced that between Rwf70 and Rwf80 tax per square metre in commercial, industrial and open space areas in ‘Central Business District (CBD)’ of the City of Kigali will be charged while between Rwf60 and Rwf80 tax will be charged on a square metre in residential areas of the CBD.

In the ‘sub-urban centre’ of Kigali city, the tax rate ranges between Rwf40 and Rwf60 in residential areas, Rwf50 and Rwf70 in commercial areas, open spaces and industrial areas.

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The ministerial order shows that the tax on a square metre in areas demarcated for agriculture and livestock use is from Rwf0 to Rwf0.4 in the sub-urban centre.

In ‘trading, peri-urban areas and neighbourhood centres’, between Rwf10 and Rwf40 per square metre in residential areas will be charged while between Rwf20 and Rwf50 will be charged in commercial, industrial and open space areas as tax from Rwf0 to Rwf0.4 is set to be charged in agriculture and livestock areas.

Satellite and secondary cities

According to the ministerial order, land taxes ranging from Rwf40 to Rwf70 per square metre will be charged in commercial, open space and industrial areas located in the Central Business District of satellite and secondary cities while owners of land in residential areas will pay from Rwf30 to Rwf60.

In the sub-urban centre, land owners in residential areas will pay Rwf10 to Rwf30 per square metre whereas commercial, open space and industrial areas have to pay between Rwf20 and Rwf40.

Landowners in agriculture and livestock zones have to pay a tax ranging from Rwf0 to Rwf0.4 in the same sub-urban centre.

The ‘trading, peri-urban area and neighbourhood centres’ of satellite and secondary cities also have particular tax rates. The open space, industrial and commercial areas in these centres have to pay between Rwf10 and Rwf20 per square metre.

The residential area will be charged between Rwf5 and Rw10 while the owners will pay between Rwf0 and Rwf0.4.

Rural areas of satellite and secondary cities have different tax rates.

Residential area of this rural real estate in satellite and secondary cities will be charged from Rwf0 and Rwf5, agriculture and livestock aresa will be charged from Rwf0 to Rwf0.4 while open space has to be charged between Rwf5 and Rwf10 per square metre.

Land tax rates elsewhere in the country

According to the new rates, owners of land in trading, peri-urban area and neighbourhood centres will pay between Rwf5 and Rwf20 per square metre in a residential area elsewhere in the country.

Commercial, industrial and open spaces areas will pay between Rwf10 and Rwf20 while agriculture land owners will pay a tax ranging from Rwf0 to Rwf0.4

A land owner in a rural area will pay between Rwf5 and Rwf10 in commercial, industrial and open space areas while a square metre in residential zones will be charged Rwf0 to Rwf5 tax as agriculture land owners will be charged up to Rwf0.4 per square metre.