The Ministry of Trade and Industry on Wednesday, April 19, announced a value added tax waiver on maize flour and rice in an effort to help ease food price inflation. The directive, which took immediate effect, comes at a time when the government plans various interventions designed to further address soaring food prices on the market. Food prices increased at an average of 13.9 per cent between January and December 2022. Price hikes have largely been attributed to unpredictable weather conditions, Covid-19 pandemic, and the war in Ukraine. According to the trade and industry ministry, an inspection conducted in different markets across the country revealed that some traders had signficantly increased food prices, unreasonably. “After analysing different reasons that have affected current food price increases and following discussions that the trade ministry held with several public institutions and private sector partners, Minicom (the ministry) would like to inform the public that the value added tax has been removed off on maize flour and rice,” it said in a statement signed by Trade and Industry minister Dr Jean-Chrysostome Ngabitsinze. The ministry also announced maximum prices for maize, maize flour, rice and irish potatoes. These foodstuff are among Rwanda's staple foods. Increases in commodity prices have one overall implication: rising cost of living. And, it is the low-income earners who suffer the most as they find it difficult to make ends meet. The government is optimistic that food prices will eventually stabilise.
