Rwanda publishes its seventh tax expenditure report

The Rwandan Ministry of Finance and Economic Planning (MINECOFIN) published its seventh tax expenditure report in May 2025. Building on the previous years’ analyses, this report expands coverage to include estimates of revenue foregone from tax reliefs on investment income and domestic excise duty, in addition to those offered under the Value Added Tax (VAT), Corporate Income Tax (CIT) and duties applied at Customs.

The report estimates that total revenue foregone due to tax expenditures amounted to Rwf 643 billion, equivalent to 3.6% of GDP and 25.4% of total tax revenue collected in FY 2023/24. Overall, total tax expenditure (TE) has increased by 15.3% (Rwf 85.1 billion) compared to 2022/23 and at an annualised growth rate of 23% since FY17/18.

Key findings include:

• VAT expenditures  were the largest component of total tax expenditures, estimated at Rwf 323.4 billion (1.8% of GDP), accounting for 50.3% of total;
• Import duties expenditures were the second largest, totalling at Rwf 272.1 billion (1.5% of GDP), representing 42.3% of total tax expenditures; and
• Income tax expenditure is estimated at Rwf 47.6 billion (0.3% of GDP).

VAT expenditure has been the largest contributor to TE in most years and continues to be so, with the increase driven by agricultural products and an improved estimate for fuel. Customs duty expenditures are the second largest contributor and their rise is mainly attributed to the Stays of Application on vehicles, wheat and rice, which temporarily hold these items at lower tariff rates than those prescribed under the East African Community (EAC) Common External Tariff (CET). 

During the past six years, the TaxDev team has worked with MINECOFIN and Rwanda Revenue Authority (RRA) staff to continuously strengthen the methodology and analysis to produce the TE reports. Consistent reporting has contributed part of the evidence for the Government of Rwanda’s tax reform package announced in February 2025. This year’s TE report also includes Climate Budget Tagging of TEs, courtesy of technical assistance from Agence Française de Développement (AFD) Group.

Supervised by Abel Ntegano (MINECOFIN), Roy Gasangwa and John Karangwa (RRA), the team consisted of Elysee Nyuzwenimana, Lucie Niyigena, Albert Ndahimana, Ruth Ufitimbabazi, Francois Uwizeye, Clenie Uwitonze, Martine Dushime, Peace Mukamazimpaka, David Ntihemuka, Gilbert Tumusabe, Niyigena Albert, Celestin Niyomugabo, Clement Harushyubuzima, Jean Claude Nyshimiyimana, Jerome Mugemanyi, Umuhire Ingabire Grace (Ukwezi) and Hassan Nasiru.

The full report can be accessed at: The full report can be accessed at: Rwanda’s Tax Expenditure Report 2023/24.