On Friday 13th May 2022, the Government of Rwanda approved its first Medium-Term Revenue Strategy (MTRS). The MTRS was jointly produced by the Ministry of Finance (MoF) and Rwanda Revenue Authority, and incorporates a series of reforms covering both tax policy and administration.
The MTRS provides a roadmap for tax reform over the three-year period from 2021-22 to 2023-24, and is aligned to the objectives and end date of Rwanda’s First National Strategy for Transformation.
Formulated mostly during the first 12 months of the COVID-19 pandemic, the proposed tax reforms are guided by four principles:
TaxDev researchers supported the Tax Policy Directorate’s (TPD) contribution to the MTRS by sharing experiences from MTRS projects in other countries; working with the TPD team to ensure that new policies were informed by the specific economic and policy context; and supporting the appraisal and evaluation of policies to ensure alignment with key principles and objectives. All partners participated in a series of workshops to discuss and advise on the appropriate policy proposals for the MTRS. TaxDev researchers also supported some of the technical analysis, and guided and reviewed the drafting of the Strategy.
Importantly, the process of developing the Strategy also provided the opportunity for various stakeholders – including government ministries, private sector representatives and civil society organisations – to share their thoughts on proposed tax reforms.
Published on: 18th May 2022Print