Rwanda to increase telecoms tax from 1 July

13 May 2014

The Rwandan government is reportedly planning to increase its tax on telecoms services from 1 July 2014, in a bid to plug a budget gap, All Africa reports. Under a bill tabled in the Lower House of Parliament last week, the telecoms tax rate will increase from 8% to 10%, with the move forecast to generate RWF2 billion (USD2.95 million) for government coffers in fiscal 2014/15. Minister Kanimba told ministers that the government had consulted telecoms companies and that they had agreed to have their excise tax increased, with Richard Tusabe, Commissioner General of Rwanda Revenue Authority (RRA), saying that the ‘minimal increase’ is too low to negatively affect consumers. However, Yvonne Makolo, marketing manager at MTN Rwanda, said in a brief statement sent to local media, that the increase in excise tax will definitely have consequences. She added: ‘The increase in excise tax from 8% to 10% will have an impact on the business since it applies to all airtime services (both voice and data).’

Rwanda, MTN Rwanda