Rwanda ramps up charges on beer and cigarettes
Rwanda has decided to raise taxes on beer and tobacco over the next five years.
This decision was made during a cabinet meeting led by President Paul Kagame on February 10.
The government says the extra money will help pay for national development projects, including the Second National Strategy for Transformation.
Yusuf Murangwa, the Minister of Finance and Economic Planning, explained that the tax increases are needed to support the country’s growth and to raise funds for important projects.
The new taxes will go up gradually each year for the next five years.
The move also aims to reduce the use of alcohol and tobacco, which can lead to serious health problems.
Activists have long called for higher taxes on these products to help fight diseases.
Rwanda already has high taxes on tobacco. For example, there is a 36 percent tax on the retail price of a pack of cigarettes, plus a fixed fee per pack.
In the past, the excise tax on cigarettes went from 60 percent in 2001 to 150 percent in 2009. By 2023, Rwanda had the highest cigarette tax in the region, with taxes making up 50 percent of a pack's price.
The government says these tax increases will not only boost the economy but also improve public health.
