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Rwanda: Tax and customs measures in 2026/2027 budget

VAT reforms, customs alignment, and new digital economy taxes

june 26, 2026

The Ministry of Finance and Economic Planning of Rwanda released the FY 2026/2027 budget, which outlines several tax proposals focused on improving compliance and efficiency in tax collection. 

Tax proposals in the FY 2026/2027 budget include:

  • VAT compliance: Strengthening tax administration efforts to reduce the VAT compliance gap by enhancing the use of electronic billing machines (EBMs) across businesses to improve compliance and reduce leakage.
  • Customs and import administration: Improving import valuation and classification to address under-reporting at customs. This plan includes a gradual alignment with the East African Community (EAC) Common External Tariff and the restoration of tariff rates on selected imports consistent with regional commitments.
  • Medium-Term Revenue Strategy (MTRS): Implementing tax measures under MTRS I, including broadening the tax base through expanded VAT coverage on information and communications technology (ICT), fuel, and online goods and services; introducing new taxes on the digital economy and tourism; adjusting selected excise and income tax rates; rationalizing tax exemptions; and strengthening tax administration and compliance measures.

Read a June 2026 report prepared by the KPMG member firm in Rwanda

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