Gov’t targets Rwf4b tax revenue from cigarettes

Government has recorded large sums of tax revenue from alcohol, and tobacco products, data from the Rwanda Revenue Authority has showed. Figures presented to Business Times indicate that last year government collected Rwf952 million from wines and liquors and Rwf3 billion from cigarettes. About Rwf12 billion was also raised from imported cars.

Government has recorded large sums of tax revenue from alcohol, and tobacco products, data from the Rwanda Revenue Authority has showed.

Figures presented to Business Times indicate that last year government collected Rwf952 million from wines and liquors and Rwf3 billion from cigarettes. About Rwf12 billion was also raised from imported cars.

According to RRA data, government expects to raise some Rwf4 billion from smokers by the end of this year but the figure is subjected to change.

Government had sharply increased taxes on cigarettes to discourage consumption, but consumers say the increase in prices has not affected their habits.

It is expected that higher cigarette prices encourage smokers to quit, reduce the number of cigarettes smoked, and prevent initiation among potential new users.

Tobacco taxes on Cost Insurance and Flight (CIF) was increased from 120 to 150 percent, while beer, wines and liquor stand at 60 and 70 percent.

Prices of Embassy, Intore and SM cigarettes manufactured by British American Tobacco Rwanda (BAT Rwanda ) prices ranges from Rwf25 to Rwf50 per stick.

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