Rwanda: Tax and customs proposals for 2025/2026
New tax laws and the 2025/2026 budget
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June 17, 2025
Tax and customs changes in Rwanda were presented through newly introduced laws and the 2025/2026 budget.
New tax laws introduced on May 25, 2025, would:
- Amend the value added tax (VAT) framework
- Impose an environmental levy on imported items packaged in plastic
- Establish an excise duty on specific goods
- Introduce levies on petrol and gas oil for strategic reserves
- Implement a tourism tax on accommodation
The budget for 2025/2026 was presented on June 12, 2025, including the following proposed changes to the customs regime:
- Electric and hybrid vehicles will continue to benefit from full customs duty exemptions, with a reduced EAC Common External Tariff of 25% for electric vehicles valued at or below US$60,000, while those above US$60,000 will be fully exempted.
- Revised customs duties aim to reduce business costs and improve access to goods. Imported rice would have a reduced duty of 45%, wheat would be exempt from customs duty, sugar would have a 25% duty, and goods for army forces' shops will be fully exempt. Road construction equipment would have a 0% duty, and public transport buses with a capacity above 25 passengers would pay 10%, while those carrying 50 or more would be fully exempted.
- Support for industrial and manufacturing sectors includes exemptions for heavy machinery and basic equipment in the textile and footwear industry, raw materials for local manufacturing, and digital payment tools. Other adjustments include a reduced customs duty on cooking oil, changes in valuation for second-hand clothing and footwear, and exemptions for imported metals used in roofing sheet production.
- Imported goods such as steel tubes, wheelbarrows, and handbags made from plastic or textile materials would be subject to a 35% customs duty, up from 25%.
Read a June 2025 report prepared by the KPMG member firm in Rwanda