Workers welcome proposal to raise taxable income
Monday, November 15, 2021
A teacher during a Kinyarwanda lesson at Groupe Scolaire Kicukiro. / Photo: Dan Nsengiyumva.

Jeannette Umurerwa, a teacher at GS Kacyiru, finds her salary increasingly insufficient to support her family.

A resident of Rulindo who was transferred to Gasabo District says her monthly expenses far outweigh her salary as she struggles to pay for rent in Kigali and also take care of her family in the village.

As a result, when her firstborn finished high school he got a job in a restaurant to help ease the pressure on her mother. 

But this also meant that he would not be enrolling for higher learning education.

Umurerwa also says that the tax burden on her income remains a challenge.

But now the government has moved to increase the taxable monthly income to Rwf60,000 up from the current Rwf30,000.

Umurerwa says that while taxes are very beneficial, reducing the burden on low-income earners will improve their purchasing power and benefit the economy more.

"It is a pleasure to contribute to the development of my country but that depends on what I earn. The adjustment to my salary that has been going in taxation will help me meet other important needs and also grant my son Rugamba a chance to go and start his own life,” Umurerwa says.

Stéphanie Mukangango, the Secretary-General of Syndicat National des Enseignants au Rwanda (SNER) also welcomed the proposal to increase the taxable income, particularly for the educators.

"It is a great opportunity for low earning teachers in either public or private schools because the 20 per cent that has been taxed to them monthly from their salary, will help save for their families,” she stated.

She said that the government should also consider giving teachers more incentives, particularly rolling out teachers’ shops to the countryside.

John Nkurunziza, a Security Guard at Highsec Security Company, said the adjustment will boost his living standards.

"I used to rent a house for Rwf10,000 per month. I will be able to shift to a better one and also change my meals for better health. I have always had one meal per day relating to what I can afford, I will be glad when the law is approved,” Nkurunziza said.

Jordi Michel Musoni, the Deputy General Secretary of CESTRAR — a trade union — told The New Times that the waiver of the tax burden is because there is a considerable percentage of workers who earn below Rwf60,000 per month.

"It is like a salary increase on their side. As advocators, we are happy for this, we consistently request for the ministerial order on the living wages which can at least help workers gain wages that can enable them to meet the market prices and live decent lives,” Musoni said.

The Covid-19 pandemic dramatically increased poverty and over 50 per cent of workers in Rwanda are low-income earners, according to CESTRAR.