Rwanda Approves Tax Break For Alcohol Using Local Materials

Parliament has approved a draft law introduced by Minister of Finance Uzziel Ndagijmana, which includes a reduced tax rate for alcohol that has been brewed using locally sourced materials.

Once in force the excise tax for beers and wines that have a local raw material content of at least 70 per cent will be halved from 60 per cent to 30 per cent. The content will be calculated according to the weight of the ingredients, excluding water.

Speaking on the move Ndagijmana has previously stated that it is intended to help spur domestic investment and provide Rwandan farmers with a market for their crops.

The minister has also stated that it is hoped that as a result of the legislation brewers such as SKOL and Bralirwa will opt to use locally produced cereals in production going forward. In addition to promoting the country’s agriculture sector it could also support economic growth by reducing money spent on imports and increasing money spent locally.