Excise Duty Law, 2025 | AFRICAN TAX LEGISLATION ATLAS

Preamble

LAW Nº 011/2025 OF 27/05/2025 ESTABLISHING THE EXCISE DUTY

We, KAGAME Paul,

President of the Republic;

THE PARLIAMENT HAS ADOPTED AND WE SANCTION, PROMULGATE THE FOLLOWING LAW AND ORDER IT BE PUBLISHED IN THE OFFICIAL GAZETTE OF THE REPUBLIC OF RWANDA

THE PARLIAMENT:

The Chamber of Deputies, in its sitting of 29 April 2025;

Pursuant to the Constitution of the Republic of Rwanda, especially in Articles 64, 93 and 165;

Having reviewed Law nº 050/2023of 05/09/2023 establishing the excise duty;

ADOPTS:

CHAPTER ONE: GENERAL PROVISIONS

Article One: Purpose of this Law

This Law establishes the excise duty levied on some imported products, products manufactured in Rwanda and services supplied in Rwanda.

Article 2: Interpretation

In this Law –

(a) “related persons” means the persons who act or are likely to act in accordance with the directives, opinions or wishes of other persons, whether or not such directives, opinions or wishes are communicated to them. In particular, the following persons are regarded as related persons:

(i) an individual and his or her spouse, their direct lineal ascendants or direct lineal descendants and their relatives in the collateral line up to at least the 3^rd degree;

(ii) one of the persons who participate directly or indirectly in the management, control or capital of another person;

(iii)a third person who participates directly or indirectly in the management, control or capital or both control and capital of another person; or

(iv)the persons provided for in sub- subparagraphs (i), (ii) and (iii) who participate directly or indirectly in the management, control or capital of a company;

(b) “taxable product” means a product manufactured in Rwanda or imported that is subject to excise duty;

(c) “tax stamp” means a sign affixed on a taxable product subject to tax indicating that the product is intended for sale in Rwanda.

(d) “Commissioner General” means the Commissioner General of the Rwanda Revenue Authority;

(e) “taxable service” means the financial transaction and telephone communication services listed in the Annex to this Law;

(f) “Tax Administration” means the Rwanda Revenue Authority;

(g) “calendar month” means a period of time defined with reference to the calendar, starting from the first day and ending on the last day of a given month;

(h) “authorised officer” means an officer empowered by the Tax Administration to conduct audits and investigations, to negotiate with the taxpayer, to adjust tax declarations, to prepare and issue notices of assessment, to draft affidavits and to do anything else that is necessary to ensure the enforcement of this Law and who possesses means of identification constituting proof of such powers;

(i) “person” includes an individual, public entity, company, cooperative, partnership, trust, foundation, subsidiary, permanent establishment and body corporate, or any other association of persons regardless of its status;

(j) “factory” means a plant, equipment or appliances used in manufacturing or processing a taxable product.

Article 3: Product manufactured in Rwanda, imported product and service supplied in Rwanda

(1) A product is considered as manufactured in Rwanda if the factory having manufactured or processed it is on the Rwandan territory.

(2) A product is considered as imported if it requires customs formalities in accordance with the customs law system on the date of entry of the product into Rwanda.

(3) A service is considered as supplied in Rwanda if it is supplied by a person licensed to operate in Rwanda to a person residing in Rwanda.

Article 4: Product and service and corresponding tax rates

The excise duty is levied on an imported product, a product manufactured in Rwanda and a service supplied in Rwanda at the corresponding tax rates as indicated in the Annex.

Article 5: Exemption from tax

(1) The following goods are exempted from the excise duty:

(a) goods for charitable organisations;

(b) vehicles assembled in Rwanda;

(d) one vehicle of a Rwandan national returning from a foreign country who fulfils exemption requirements provided for in the East African Community Customs Management Act;

(e) vehicles in the following categories:

(i) minibus and bus that can carry not less than 14 persons;

(ii) lorries and single cabin pick-ups manufactured to carry goods;

(iii) refrigerating vehicles;

(iv) tourist vehicles;

(v) ambulances and vehicles designed for persons with disabilities;

(f) products specifically manufactured for export;

(g) products sold to duty free shops and other specific persons determined by relevant Laws.

(2) The tourism vehicles provided for in paragraph (1)(e)(iv) are subject to the requirements provided for by the East African Community Customs Act.

Article 6: Tax base

(1) Without prejudice to the tax procedure applicable to the quantity of certain products and which is provided for in Article 4 –

(a) the tax base for an imported product is calculated in accordance with the provisions of the East African Community Customs Act;

(b) the tax base for a product manufactured in Rwanda and a service supplied in Rwanda is the selling price of the product or service;

(2) The selling price provided for in paragraph (1)(b) is the total amount paid or to be paid by a buyer or recipient of a taxable product or service to the producer of the product or the service supplier, excluding the value added tax.

(3) If a producer of a product or service provider and buyer or recipient of a taxable product or service are related persons, the selling price is the price that the product or service would reasonably be expected to fetch in an arm’s length transaction at the wholesale level in accordance with relevant Laws.

Article 7: Time for taxation

The tax is payable on a product or service when –

(a) the product is cleared out of the factory, in case of a product manufactured in Rwanda;

(b) the product is under the customs control, in case of an imported product; or

Article 8: Tax period

The tax period is the calendar month.

Article 9: Period for tax declaration and payment

(1) The taxpayer declares and pays the tax within five days following the periods provided for in Article 8.

(2) The tax on an imported product is paid concurrently with customs duties.

(3) The Tax Administration determines mandatory documents accompanying the declaration of the tax.

CHAPTER II: TAXPAYER’S OBLIGATIONS AND RIGHTS

Section One: Taxpayer’s obligations

Article 10: Keeping registers

(1) The manufacturer of a taxable product keeps up to date the following registers:

(a) a register of inventory of the products manufactured;

(b) a sales register;

(d) a register of ongoing operations.

(2) The register of inventory of the manufactured products indicates the quantity and batch number of production. It also indicates the products damaged, discarded or burnt after being inspected by the authorised officer, the quantity the products exported and those sold for consumption.

(3) The sales register indicates the price and quantity offered to every customer, his or her name and address.

(4) The materials to be used in the manufacture of a taxable product are recorded in the register of raw materials.

(5) In the register of ongoing operations, a record is made of the date and time of the start and end of operations, the names, type and nature of the equipment used in the factory. It also includes a record of information on the daily status of every piece of equipment.

(6) If operations are not carried out or are interrupted, the manufacturer of a taxable product notifies the Tax Administration thereof within ten days of the date of interruption of operations.

(7) The registers provided for in this Article may be in either electronic or paper form.

(8) The authorised agent signs in the registers provided for in this Article to confirm the inspection carried out by him or her.

(9) Directives of the Commissioner General may determine other information to be included in the sales register.

Article 11: Affixing a tax stamp on a taxable product

(1) The taxpayer of excise duty whose products are locally manufactured or imported to be sold on the Rwandan market affixes on them a tax stamp.

(2) Directives of the Commissioner General determine the list of products subject to the affixing of a tax stamp, its design as well as procedures for its issuance, affixing and payment.

Article 12: Submission to the Tax Administration of a reconciliation statement on the usage of tax stamps

(1) A manufacturer or importer of a taxable product accounts for the usage of tax stamps issued to him or her in a reconciliation statement. The monthly reconciliation statement shows a summary of the usage of tax stamps under the following headings:

(a) tax stamps in stock at the close of the month preceding the month in which a taxable product is manufactured;

(b) tax stamps received from the Tax Administration;

(d) tax stamps damaged during the taxable product manufacturing process as certified by the authorised officer

(e) tax stamps not accounted for in the monthly reconciliation statement;

(f) tax stamps in stock at the end of the month carried forward for use in the following month.

(2) A manufacturer or importer of a taxable product submits to the Tax Administration a reconciliation statement on the usage of tax stamps within ten days following the month in which the tax stamps were used.

Article 13: Keeping books of accounts

A taxpayer keeps the books of accounts in accordance with generally accepted accounting principles.

Section 2: Taxpayer’s rights

Article 14: Self-assessment

A taxpayer has the right to self-assessment in accordance with the provisions of this Law and related Laws.

CHAPTER III: FAULTS, OFFENCES, SANCTIONS AND PENALTIES

Section One: Faults and administrative sanctions

Article15: Failure to keep tax stamps register or timely submit to Tax Admin reconciliation statement on the usage of tax stamps

A domestic manufacturer or importer of a taxable product who –

(a) fails to keep a tax stamp register, records or any other related documents; or

(b) fails to submit to the Tax Administration a reconciliation statement on the usage of tax stamps within the prescribed time limit;

commits a fault. He or she is liable to an administrative fine of not less than FRW 1,000,000 but not more than FRW 2,000,000.

Section 2: Offences and penalties

Article 16: Penalties for offences related to the usage of tax stamps

(1) An individual who is a domestic manufacturer or importer of taxable products who –

(a) fails to affix tax stamps on a product;

(b) affixes tax stamps on a taxable product in a manner contrary to the provisions of Article 11 of this Law;

(d) submits to the Tax Administration an incorrect or incomplete reconciliation statement on the usage of tax stamps;

(e) uses tax stamps on a product for which they are not intended; or

(f) sells a taxable product without tax stamps;

commits an offence. Upon conviction, he or she is liable to imprisonment for a term of not less than 6 months but not more than 1 year and to a fine of not less than FRW 1,000,000 but not more than FRW 2,000,000 or one of these penalties.

(2) When the perpetrator of the offence referred to in this Article is a person other than an individual, such a person is liable to a fine of not less than FRW 5,000,000 but not more than FRW 10,000,000.

(3) In case of recidivism within a period not exceeding two years, the fine is doubled.

CHAPTER IV: FINAL PROVISIONS

Article 17: Language provision

This Law was drafted in English, considered and adopted in Ikinyarwanda.

Article 18: Repealing provision

Law nº 050/2023 of 05/09/2023 establishing the excise duty is repealed.

Article 19: Entry into force

This Law comes into force on the date of its publication in the Official Gazette of the Republic of Rwanda.