Rwanda Implements Significant Gambling Tax Increase as Part of Fiscal Reforms
The Government of Rwanda has announced a sharp increase in gambling taxes, raising the Gross Gambling Revenue (GGR) tax from 13% to 40% and increasing the withholding tax on winnings from 15% to 25%.
Higher Taxes on the Gambling Industry
The revised tax structure represents a significant shift in Rwanda’s approach to gambling regulation. With the GGR tax tripling and the withholding tax on winnings also seeing a steep rise, the government aims to balance economic growth with social responsibility.
A statement from the Ministry of Finance and Economic Planning emphasized the rationale behind the decision:
“As we continue to build a robust economy and transform the livelihoods of all citizens, the reform of the gambling tax regime is a pivotal part of our medium-term strategy. These measures not only strengthen our resilience but also promote self-reliance, allowing us to meet our development goals effectively.”
Part of a Wider Fiscal Reform Package
The new gambling tax policy is just one component of a broader set of fiscal adjustments for the 2024/2025 financial year. Other key measures include:
- A 15% excise duty on cosmetic and beauty products
- Increased vehicle registration fees, including for electric vehicles
- Adjustments to the fuel levy and VAT on mobile phones and ICT equipment
- A new 3% Tourism Levy on accommodation costs to support the tourism sector
Additionally, Rwanda is maintaining tax exemptions for hybrid vehicles, in line with its efforts to encourage green mobility. Excise duties on vehicles will now be adjusted based on their age, further aligning taxation with environmental policy.
Government Support for a Smooth Transition
To ease the transition, the government has pledged to support taxpayers through education initiatives and awareness programs. The Ministry of Finance and Economic Planning underscored the importance of collaboration, stating:
“In these challenging times, we recognize the importance of collaboration with our taxpayers. Our commitment to a prosperous future for all Rwandans remains steadfast, and we will work diligently to ensure that these reforms benefit our society as a whole.”
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