The cabinet meeting, chaired by President Paul Kagame on Monday, February 10, decided to increase taxes on beers and tobacco. ALSO READ: Tobacco use and its associated determinants among adults The cabinet discussed national economic development and financing of the Second National Strategy for Transformation (NST2). Yusuf Murangwa, the Minister of Finance and Economic Planning (MINECOFIN), noted that the government has decided to increase taxes on alcoholic drinks and cigarettes for various reasons. We have increased taxes on tobacco and alcohol. Implementing the Second National Strategy for Transformation requires resources. For the country to develop further, it requires taxes, he said. ALSO READ: WHO awards Rwandan for tobacco fight He noted that the tax increase will be implemented over the next five years. Every year, these taxes will be increased progressively. We will explain it further, he said. The tax increase on tobacco and alcohol coincides with activists' calls to raise taxes on such products, as they contribute to the rise in non-communicable diseases. Innovative financing models to curb non-communicable diseases include taxes on alcohol and tobacco. ALSO READ: Increase taxes on tobacco, experts urge government There are three types of taxes on tobacco in Rwanda: a 36 percent tax on the retail price of a pack (of 20 sticks), plus Rwf130 per pack. According to data from the Rwanda Revenue Authority (RRA), the government also increased the cigarette excise tax (a tax levied on manufactured or imported cigarettes) from 60 percent in 2001, to 120 percent in 2007, and 150 percent since 2009. By 2023, data from the RRA showed that, compared to the region, Rwanda had the highest excise tax on cigarettes, comprising 50 percent of the total retail price of a pack, followed by Burundi (39 percent), Kenya (35 percent), Uganda (25 percent), and Tanzania (11 percent).
