Rwanda publishes its third tax expenditure report

Rwanda’s tax expenditure report for 2019/20 was completed and published in May 2021. The report was collaboratively produced with TaxDev, and published by Rwanda's Ministry of Finance and Economic Planning. 

Over a period of five months, TaxDev supported the drafting of the report as well as the handover of tax expenditure modelling through technical training with Ministry and Rwanda Revenue Authority (RRA) staff. Our assistance is not only focused on supporting the improved transparency of reporting on expenditure through the tax system, but building capabilities within the Ministry in order to establish the reporting on an annual basis.

The report finds that total tax expenditure has continued to grow, forming 17.9% of potential tax revenue in Fiscal Year 2019/20. VAT remains the largest component but the increase is driven by greater imports of industrial inputs that are exempted or have reduced rates for import duties.

This is the third annual report that TaxDev has supported the delivery of, and the team looks forward to continuing to support the Ministry’s future efforts to disseminate information on tax expenditure.