{"id":105323,"date":"2025-07-13T17:35:25","date_gmt":"2025-07-13T17:35:25","guid":{"rendered":"https:\/\/www.africa-press.net\/rwanda\/all-news\/rwandas-2025-26-tax-shifts-and-eac-tariff-divergence"},"modified":"2025-07-13T18:30:08","modified_gmt":"2025-07-13T18:30:08","slug":"rwandas-2025-26-tax-shifts-and-eac-tariff-divergence","status":"publish","type":"post","link":"https:\/\/www.africa-press.net\/rwanda\/economy\/rwandas-2025-26-tax-shifts-and-eac-tariff-divergence","title":{"rendered":"Rwanda\u2019s 2025\/26 Tax Shifts and EAC Tariff Divergence"},"content":{"rendered":"

Africa-Press – Rwanda. <\/strong><\/span>Rwanda has adopted changes to its tax policy for the 2025\/2026 fiscal year that began on July 1, including charging different rates on some imported products than those set under the East African Community (EAC) Common External Tariff (CET).<\/p>\n

These adjustments aim to protect local industries, lower transport and production costs, promote green transport, and improve access to essential goods while remaining within the legal flexibilities allowed under EAC rules, according to the Ministry of Finance and Economic Planning.<\/p>\n

While presenting the 2025\/2026 budget bill to Parliament, on June 12, the Minister of Finance and Economic Planning, Yusuf Murangwa, said that the tax policy changes are specifically meant to support the entire population to access basic needs, promoting the Made in Rwanda policy and a cashless economy, and continue encouraging the adoption of green initiatives.<\/p>\n

Felicien Mwumvaneza, the Commissioner for Customs at Rwanda Revenue Authority (RRA), explained that under the EAC Customs Management Act, EAC partner states are allowed to request a “stay of application” on the CET. This allows member states to apply different tax rates from the common tariff when necessary.<\/p>\n

Mwumvaneza was, on July 8, responding to a question on why Rwanda decided to apply different rates than those provided for by the EAC CET, during a press conference on RRA\u2019s tax collection performance for the previous fiscal year and compliance improvement plan for the current year.<\/p>\n

He pointed out that Rwanda has frequently used this legal provision to lower import duties on certain goods\u2014especially transport vehicles\u2014because high duties could negatively impact businesses and increase the cost of transport, which in turn raises the cost of goods and services, hence having a ripple effect on the broader economy.<\/p>\n

\u201cIt is the right of any country to negotiate on a country-by-country basis under the EAC framework to say, okay, I will stay this application and adopt a lesser rate… Sometimes it actually goes higher than the actual rate in the CET,\u201d he said.<\/p>\n

Here are Rwanda\u2019s changes for 2025\/2026 regarding the EAC Common External Tariff policy:<\/p>\n

1. Incentives for green transportation extended<\/p>\n

To support Rwanda’s transition to electric mobility and reduce greenhouse gas emissions from the transport sector, an import duty incentive of zero per cent rate for electric vehicles \u2013 including motorcycles \u2013 and hybrid vehicles, is extended to the current fiscal year.<\/p>\n

This means that in the current 2025\/26, such vehicles are exempted from the 25 per cent import duty set by the EAC Common External Tariff.<\/p>\n

2. High-end tourism sector support<\/p>\n

To boost Rwanda\u2019s high-end tourism industry, incentive to luxury vehicles used in the sector has been extended.<\/p>\n

Vehicles with a value exceeding $60,000 will be exempt from import duties and related taxes, while those valued up to $60,000 will attract the standard 25 per cent Common External Tariff (CET) and related taxes.<\/p>\n

3. Import duty adjustments for strategic foodstuffs<\/p>\n

Import duty for rice is set to reduce to 45 per cent or $345 per tonne, down from the 75 per cent EAC CET rate.<\/p>\n

Rwanda faces a rice supply gap, with the local market demand being largely dependent on imports.<\/p>\n

According to data from the Ministry of Trade and Industry, Rwanda’s rice imports rose by 21 per cent in 2024, reaching 508,852 tonnes from 417,862 tonnes in 2023, as national demand grew to 596,938 tonnes.<\/p>\n

These volumes far exceed local production, which was estimated at 86,859 tonnes in 2023, and 87,998 tonnes in 2024.<\/p>\n

The import bill jumped 32 per cent to $317.2 million from rom $238.9 million in 2023. Despite rising demand, local production met only 17 per cent of needs in 2024, with imports covering 83 per cent of consumption, as per the ministry\u2019s data.<\/p>\n

Wheat will not pay the 35 per cent rate under the EAC regime, but will be exempted from it after Rwanda decided to apply a zero per cent rate on it.<\/p>\n

The imports of sugar will be charged a 25 per cent duty for 70,000 tonnes \u2013 as the set quantity \u2013 which is a quarter of a 100 per cent rate or $460 per tonne (whichever is higher) under EAC CET.<\/p>\n

Refined cooking oil sees its import duty reduced to 25 per cent from 35 per cent.<\/p>\n

Goods imported for use in the Armed Forces Shop (AFOS) will pay zero per cent duty, instead of 25 per cent. The decision is meant to make products more affordable for the beneficiaries. AFOS is a duty-free shop where Rwanda Defence Force (RDF), Rwanda National Police (RNP), and correctional facilities (prisons) personnel and their family members \u2013 spouses and children \u2013 get relatively affordable products including foodstuffs. It is in line with improving the welfare of Armed Forces members and their immediate families.<\/p>\n

4. Facilitating the road transport of goods<\/p>\n

Importers of road tractors for semi-trailers are exempted from a 10 per cent duty that they would otherwise pay in case of the EAC CET rate application.<\/p>\n

Goods transport motor vehicles with a gross weight exceeding five tonnes but not above 20 tonnes will pay an import duty rate of 10 per cent instead of 25 per cent, while goods transport motor vehicles exceeding 20 tonnes in capacity will be free from the 25 per cent rate.<\/p>\n

Buses for transportation of more than 25 people face an import duty rate of 10 per cent, while buses with a capacity of 50 people and above will pay a duty rate of 0 per cent instead of 25 per cent. This is in line with encouraging investment in public transport and improving passenger movement in this regard.<\/p>\n

5. Backing Made in Rwanda<\/p>\n

Capital machinery and raw materials used in the manufacturing of textile garments and footwear will pay an import duty of 0 per cent instead of 10 per cent or 25 per cent; while a list of industrial raw materials will be duty-free (zero per cent), down from 10 per cent, 25 per cent, or 35 per cent \u2013 depending on the raw materials in question with the responding rate.<\/p>\n

Such incentives are geared towards supporting the domestic textile industry and local manufacturing overall.<\/p>\n

To promote Rwanda\u2019s textile, leather, and footwear industries, worn clothing (also known as used clothes or second-hand clothes) faces a duty of $2.50 (approx. Rwf3,500) per kilo instead of 35 per cent or $0.40 per kilo. Worn footwear incurs a duty of $5 (approx. Rwf7,000) per kilo instead of 35 per cent or $0.40 per kilo, whichever is higher.<\/p>\n

To protect local producers, certain finished goods will now incur a 35 per cent import duty instead of 25 per cent, while the raw materials needed for their production will be imported duty-free. These goods include steel tubes, wheelbarrows, and handbags with an outer surface of sheeting of plastics or of textile material.<\/p>\n

6. Endorsing electronic transactions<\/p>\n

To promote cashless transactions, electronic payment devices (POS machines, smart cards, cash registers) are imported duty-free in the current fiscal year, instead of being subject to a 25 per cent charge.<\/p>\n

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

Africa-Press – Rwanda. Rwanda has adopted changes to its tax policy for the 2025\/2026 fiscal year that began on July 1, including charging different rates on some imported products than those set under the East African Community (EAC) Common External Tariff (CET). These adjustments aim to protect local industries, lower transport and production costs, promote […]<\/p>\n","protected":false},"author":84,"featured_media":105322,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[24,15,29],"tags":[758],"class_list":["post-105323","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-news","category-economy","category-head-lines","tag-rwanda"],"yoast_head":"\nRwanda\u2019s 2025\/26 Tax Shifts and EAC Tariff Divergence - Rwanda<\/title>\n<meta name=\"description\" content=\"Rwanda has adopted changes to its tax policy for the 2025\/2026 fiscal year that began on July 1, including charging diff ...\" \/>\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\/economy\/rwandas-2025-26-tax-shifts-and-eac-tariff-divergence\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Rwanda\u2019s 2025\/26 Tax Shifts and EAC Tariff Divergence\" \/>\n<meta property=\"og:description\" content=\"Rwanda has adopted changes to its tax policy for the 2025\/2026 fiscal year that began on July 1, including charging diff ...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.africa-press.net\/rwanda\/economy\/rwandas-2025-26-tax-shifts-and-eac-tariff-divergence\" \/>\n<meta property=\"og:site_name\" content=\"Rwanda\" \/>\n<meta property=\"article:published_time\" content=\"2025-07-13T17:35:25+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-07-13T18:30:08+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/static.africa-press.net\/rwanda\/sites\/23\/2025\/07\/sm_1752417604.167772.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1280\" \/>\n\t<meta property=\"og:image:height\" content=\"720\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"cfeditoren\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"cfeditoren\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"6 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.africa-press.net\/rwanda\/economy\/rwandas-2025-26-tax-shifts-and-eac-tariff-divergence#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.africa-press.net\/rwanda\/economy\/rwandas-2025-26-tax-shifts-and-eac-tariff-divergence\"},\"author\":{\"name\":\"cfeditoren\",\"@id\":\"https:\/\/www.africa-press.net\/rwanda\/#\/schema\/person\/068c7ab4e9634ae78ec5d54ec46598bb\"},\"headline\":\"Rwanda\u2019s 2025\/26 Tax Shifts and EAC Tariff Divergence\",\"datePublished\":\"2025-07-13T17:35:25+00:00\",\"dateModified\":\"2025-07-13T18:30:08+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.africa-press.net\/rwanda\/economy\/rwandas-2025-26-tax-shifts-and-eac-tariff-divergence\"},\"wordCount\":1112,\"commentCount\":0,\"image\":{\"@id\":\"https:\/\/www.africa-press.net\/rwanda\/economy\/rwandas-2025-26-tax-shifts-and-eac-tariff-divergence#primaryimage\"},\"thumbnailUrl\":\"https:\/\/static.africa-press.net\/rwanda\/sites\/23\/2025\/07\/sm_1752417604.167772.jpg\",\"keywords\":[\"Rwanda\"],\"articleSection\":[\"all news\",\"Economy\",\"head lines\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.africa-press.net\/rwanda\/economy\/rwandas-2025-26-tax-shifts-and-eac-tariff-divergence#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.africa-press.net\/rwanda\/economy\/rwandas-2025-26-tax-shifts-and-eac-tariff-divergence\",\"url\":\"https:\/\/www.africa-press.net\/rwanda\/economy\/rwandas-2025-26-tax-shifts-and-eac-tariff-divergence\",\"name\":\"Rwanda\u2019s 2025\/26 Tax Shifts and EAC Tariff Divergence - 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