In line with Rwanda’s 2025/2026 National Budget, the Ministry of Finance and Economic Planning, together with the Rwanda Revenue Authority (RRA), has undertaken a comprehensive overhaul of the country’s tax legislation. These reforms are aimed at strengthening revenue collection while aligning the tax framework with emerging priorities such as environmental protection and economic resilience. Several key tax laws were enacted on May 27, 2025, marking a significant shift in Rwanda’s fiscal landscape. The changes are expected to impact a wide spectrum of taxpayers—particularly manufacturers, importers, tourism operators, and players in the petroleum sector—while boosting government revenue. Among the most notable legislative changes is Law No. 009/2025, which amends the VAT framework established under Law No. 049/2023. Law No. 010/2025 introduces an environmental levy on imported items packaged in plastic, reinforcing Rwanda’s green economy goals. Law No. 011/2025 establishes a revised excise duty regime targeting specific goods, including alcohol and tobacco products. Law No. 012/2025 introduces strategic reserve levies on petrol and gas oil to ensure energy security. Law No. 015/2025 implements a new tourism tax on accommodation services. Additionally, Ministerial Order No. 003/25/10/TC of 16 April 2025 sets new registration fees for both imported and already registered vehicles in Rwanda. While these reforms are commendable from a revenue and policy standpoint, there is growing concern that many taxpayers remain unaware of the extent and implications of these changes. Without timely knowledge and compliance, businesses risk falling afoul of the law. These reforms will significantly affect businesses and individuals in the manufacturing, importation, tourism, and energy sectors. Alcohol and tobacco consumers will also feel the impact of increased excise duties, which may discourage excessive consumption and support public health goals. Non-compliance with tax obligations is costly. Under the Tax Procedures Law, penalties can reach up to 100 percent of the principal tax due. In some cases, tax evasion may even lead to imprisonment. Responsible tax behavior is therefore not only a legal requirement but a strategic necessity for business continuity. To remain compliant and protect your business, it is critical to engage in proactive tax planning, maintain accurate records, conduct regular tax health checks, stay updated with changes in tax laws, and seek professional advice when necessary. This is a time when businesses must contribute appropriately to national development by paying the right amount of tax—not more, not less, but exactly what the law requires. Tax compliance should also be elevated to a board-level priority. Companies are encouraged to establish tax committees within their boards, just as they have audit or human resources committees. Financial statement auditors should likewise refrain from signing audit opinions without conducting a tax health check as part of their procedures. As Rwanda enters a new fiscal era, the message for every taxpayer is simple and clear: don’t underpay taxes, don’t overpay taxes—just pay what the law requires. The author is a Partner – Tax and Regulatory Services, at Garnet Partners Ltd.
