Winners and losers in the 2018/2019 budget

Every annual budget presents winners and losers. The recently released 2.4 trillion budget for the 2018/2019 fiscal year was no different.

Winners, are players in the sectors that have tax deductions or scrapped off, while losers are players in sectors that will be required to pay more taxes.

Tax reliefs or deductions are usually done to promote priorities of government such as the ‘Made in Rwanda’ initiative.

Tax hikes on the other hand are usually to promote competing products and services (especially local and regional) or discourage consumption of the products and services

Winners

Disciplined forces:  Imports meant to be retailed at the Army Shop will remain zero rated in regards to tax.

Heavy vehicle imports

Trailer trucks will not be taxed compared to the previous 10 per cent of the value of the truck.

Trucks with a capacity of between 5 to 20 tonnes will pay 10 per cent tax compared to the previous 25 per cent.

Commercial trucks with a capacity of over 20 tonnes will not pay any tax a huge relief from the previous 25 per cent levy.

Public transport vehicles importers

Public transport vehicles with a capacity of between 25 to 50 passengers have their tax brought down to 10 per cent as opposed 25 per cent previously.

Vehicles with a capacity of over 50 passengers will pay 0 taxes down from the previous 25 per cent.

Communication equipment imports:

Communication equipment will be tax exempted down from 25 per cent.

Sports Bikes importers and users:

Sports bikes for racing purposes will be tax exempt which is a huge relief from 25 per cent tax.

Textile industry

The Made-in-Rwanda clothes brand will have machines and other raw materials zero rated compared to the previous 10 per cent levy.

Losers:

Second hand apparel importers

Used clothes dealers will now have to pay $4/kg for imports up from $2.5/kg.

Second-hand shoe dealers will now pay $5/kg of import up from $0.4 in the current fiscal year.

editorial@newtimes.co.rw

 

 

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