APA – Kigali (Rwanda) -The Rwandan government has confirmed that it has waived taxes for what it deems essential foods, aiming to fight surging prices that have hit consumers hard in recent months.
The Minister of Trade and Industry, Jean-Chrysostome Ngabitsinze, said the Value Added Tax exemption on foodstuffs like rice and maize flour will last for a long time.
However, he noted that the maximum prices that the ministry recently set for food may be reviewed in accordance with how the harvest season will go.
According to the Ministry of Finance and Economic Planning, the reforms will reduce tax rates, broaden the tax base, and improve tax compliance.
The Commissioner General of Rwanda Revenue Authority (RRA), Pascal Ruganintwali on Saturday noted that the exemption of VAT from some products, for example, is expected to increase the purchasing power of Rwandans and with this, businesses will make more sales and pay more taxes.
Rwanda’s Consumer Price Index (CPI), the main gauge of inflation, increased by 19.3 percent year on year in March 2023 down from 20.8 percent in February 2023.
The prices of the “fresh products” increased by 53 percent on annual change and increased by 5.3 percent on monthly basis.
CU/as/APA