{"id":100263,"date":"2025-04-29T18:11:16","date_gmt":"2025-04-29T18:11:16","guid":{"rendered":"https:\/\/www.africa-press.net\/rwanda\/all-news\/mps-question-exemptions-in-newly-passed-vehicle-levy-bill"},"modified":"2025-04-29T18:11:16","modified_gmt":"2025-04-29T18:11:16","slug":"mps-question-exemptions-in-newly-passed-vehicle-levy-bill","status":"publish","type":"post","link":"https:\/\/www.africa-press.net\/rwanda\/policy\/mps-question-exemptions-in-newly-passed-vehicle-levy-bill","title":{"rendered":"MPs question exemptions in newly passed vehicle levy bill"},"content":{"rendered":"

Africa-Press – Rwanda. <\/strong><\/span>MP Christine Mukabunani has raised concerns over exemptions included in a new bill that is set to introduce levies on petrol, diesel, and motor vehicles to fund road maintenance in Rwanda. The bill was passed by the Lower Chamber of Parliament on Monday, April 28.<\/p>\n

Under the new law, exemptions are granted to government vehicles, embassy and diplomatic vehicles accredited to Rwanda, and vehicles belonging to international organisations with formal agreements with the government.<\/p>\n

During the parliamentary session, Mukabunani questioned the rationale behind exempting certain categories of vehicles from contributing to road maintenance, despite all vehicles using\u2014and potentially damaging\u2014the country’s roads.<\/p>\n

“In my opinion, any person [vehicle owner] who uses the road should pay the levy, whether they drive a government vehicle or one of the other exempted categories,” she argued.<\/p>\n

Mukabunani further pointed out that if the exemption is based on the critical nature of services provided, ambulances\u2014which are not exempt under the bill\u2014would be more justifiably excluded than some of the listed categories.<\/p>\n

“I don’t see why some vehicles should be exempt while others are required to pay, yet all contribute to road wear and tear,” she said.<\/p>\n

New Levy to replace flat fuel-based charge<\/b><\/p>\n

The new law seeks to establish a more sustainable and equitable model for financing road maintenance, particularly as Rwanda shifts towards electric mobility.<\/p>\n

Currently, road maintenance is funded through a flat fee of Rwf115 per litre of petrol and diesel. The new system will replace that with a percentage-based levy\u201415 percent\u2014calculated on the cost, insurance, and freight (CIF) value of imported petroleum products.<\/p>\n

In addition, the law introduces annual vehicle-specific charges:<\/p>\n

Cars and jeeps: Rwf50,000<\/p>\n

Pick-ups, microbuses, minibuses, and buses: Rwf100,000<\/p>\n

Trucks and half-trailers: Rwf120,000<\/p>\n

Trailers: Rwf150,000<\/p>\n

Addressing the road maintenance funding gap<\/b><\/p>\n

An explanatory note attached to the bill indicates that the Road Maintenance Fund (RMF) is currently facing a significant funding shortfall. This gap is expected to widen as Rwanda implements the second phase of its National Strategy for Transformation (NST2), which targets a 38 percent reduction in greenhouse gas emissions by 2025\u2014largely through the promotion of electric vehicles.<\/p>\n

Because electric vehicles do not contribute to the current fuel-based road fund, the government considers the new levy essential to maintaining and upgrading the country\u2019s road infrastructure as the composition of the national vehicle fleet evolves.<\/p>\n

As of 2023, Rwanda had 330,166 registered vehicles, according to the National Institute of Statistics of Rwanda’s 2024 Statistical Yearbook. Between 2020 and 2024, the Rwanda Revenue Authority recorded the importation of 7,172 electric and hybrid vehicles\u2014512 fully electric and 6,660 hybrid vehicles.<\/p>\n

For More News And Analysis About Rwanda<\/span> Follow Africa-Press<\/span><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Africa-Press – Rwanda. MP Christine Mukabunani has raised concerns over exemptions included in a new bill that is set to introduce levies on petrol, diesel, and motor vehicles to fund road maintenance in Rwanda. The bill was passed by the Lower Chamber of Parliament on Monday, April 28. Under the new law, exemptions are granted […]<\/p>\n","protected":false},"author":84,"featured_media":100262,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[24,14],"tags":[6386,7301,3865,4318,1164,7300,758],"class_list":["post-100263","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-news","category-policy","tag-ambulances","tag-and-vehicle-levy","tag-diesel","tag-electric-vehicles","tag-petrol","tag-road-maintenance","tag-rwanda"],"yoast_head":"\nMPs question exemptions in newly passed vehicle levy bill - Rwanda<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.africa-press.net\/rwanda\/all-news\/mps-question-exemptions-in-newly-passed-vehicle-levy-bill\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"MPs question exemptions in newly passed vehicle levy bill\" \/>\n<meta property=\"og:description\" content=\"Africa-Press – Rwanda. 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