Imported goods to pay ‘environmental levy’ announced

In February 2025, the Rwandan government announced an environmental levy on imported goods packaged in plastic materials and single-use products, set to take effect in July. ALSO READ: Rwanda imposes levy on imports packaged in plastics The draft law establishing the environmental levy aims to facilitate domestic resource mobilisation while supporting the Second National Strategy for Transformation (NST2). This initiative aligns with the 2019 law prohibiting the manufacturing, importation, use, and sale of plastic carry bags and single-use plastic items. According to Article 5, imported goods packaged in plastic will now be subjected to this environmental tax. The levy will be applied to consumer goods packaged in plastic, with specific exemptions: single-use plastic items that meet criteria under the East African Community Customs Management Act, as well as pharmaceutical products. ALSO READ: How banning of single-use plastics will contribute to environment protection The environmental levy will be charged at a rate of 0.2% on the total value of the imported goods. It will be collected at customs and deposited into a sub-account of the Public Treasury single account. A breakdown of affected goods includes: Water Rwanda imports bottled water mainly from East African neighbours like Kenya and Uganda. The Rwandan bottled water market is anticipated to generate revenues of approximately US$126.52 million in 2025. The new levy promotes local production and encourages environmentally friendly packaging practices. “Local manufacturers were disallowed from using plastic packaging, while importers faced no levies. This was unfair,” Prudence Sebahizi, the Minister of Trade and Industry says. Non-Alcoholic Beverages The levy applies to all juices, energy drinks, and carbonated beverages. The global non-alcoholic drinks market is estimated at $1.3 trillion in 2022, with a projection to reach $2.2 trillion by 2032. Rising consumer demand for healthier options is driving this growth, indicating a likely increase in imports if local production does not keep pace. Peanut Butter Demand is rising in Rwanda due to growing nutritional awareness and lifestyle changes. Honey and Derived Products In 2022, Rwanda imported honey valued at approximately $1.35 million, coming primarily from Tanzania, DR Congo, the UAE, South Africa, and Argentina. Personal Care Products The importation of body lotions, petroleum jelly, and shampoos reflects a changing market driven by urbanisation and increasing disposable income, with petroleum jelly imports totaling about $6.14 million in 2022. Mattresses Rwanda imported mattresses worth around $1.92 million in 2022, ranking as the 159th largest global importer of this product. Main source countries include China, the UAE, the UK, Turkey, the US, and South Africa. Textiles and Clothing Imports primarily come from China, India, Tanzania, Vietnam, and the UAE. Footwear imports are mainly from China, Kenya, Turkey, Tanzania, and India. Soap Rwanda imported $5.61 million worth of soap in 2023, ranking as the 150th largest global soap importer. Primary sources include Kenya, Indonesia, Tanzania, the UAE, Uganda, Belgium, and Egypt. “This levy is timely because local manufacturers who package their goods in plastic were already paying a fee of Rwf120 per kilogram, while imported goods remained exempt from such charges,” the minister noted.

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Imported goods to pay ‘environmental levy’ announced