Cabinet strengthens tax administration

KIGALI – The Cabinet, chaired by President Paul Kagame on Tuesday, August 30, adopted key measures aimed at improving tax collection and supporting economic development.

As part of the reforms, a permanent tax policy committee has been established under the new structure to enhance stakeholder participation in tax policy development.

Microfinance institutions will also receive support, including simplified requirements for extending their tax exemption period.

To improve tax compliance, the Cabinet approved measures such as increased rewards for individuals who report tax evasion and simplified tax payment procedures for businesses. The reforms also raise the asset threshold for reporting by financial institutions and certified accountants.

In addition, the Cabinet approved a revision of tax policy aimed at improving fairness in tax payments, introducing a new tax calculation method for microfinance institutions, and simplifying tax procedures for small traders and entrepreneurs.

The measures are expected to increase tax revenue and improve business efficiency.