Rwanda’s government is set to increase taxes on beer and tobacco over the next five years, aiming to fund development projects and improve public health. This decision follows a cabinet meeting led by President Kagame and reflects ongoing efforts to combat health issues associated with alcohol and tobacco consumption.
The Rwandan government has announced plans to increase taxes on beer and tobacco over the next five years. This decision follows a cabinet meeting led by President Paul Kagame on February 10, where officials indicated that the additional revenue would be allocated to national development initiatives, particularly the Second National Strategy for Transformation.
Finance and Economic Planning Minister Yusuf Murangwa stated that these tax hikes are crucial for sustaining the nation’s growth and generating funds for significant development projects. The increase will occur gradually each year for the next five years to ensure smooth implementation.
In addition to raising funds, the government aims to reduce the consumption of alcohol and tobacco, known to contribute to serious health issues. Advocates for public health have consistently urged for higher taxes on these products to combat related diseases effectively.
Currently, Rwanda imposes substantial taxes on tobacco, including a 36 percent retail tax on cigarette packs along with a fixed fee. Historically, excise taxes on cigarettes have surged from 60 percent in 2001 to 150 percent since 2009. By 2023, Rwanda’s cigarette taxes constituted 50 percent of the retail price, making it the highest in the region.
Rwanda’s leadership posits that these tax increases will not only enhance the economy but also promote better public health among its citizens.
In summary, Rwanda’s government has resolved to increase taxes on beer and cigarettes, which will be implemented gradually over five years. This initiative aims to fund national development projects and improve public health by discouraging unhealthy consumption habits. The current high tax rates on tobacco products reflect the government’s ongoing commitment to both economic growth and health promotion.
Original Source: globalsouthworld.com
