The legislation establishes a 15% levy on gasoline and diesel, calculated based on the cost of the fuel, insurance, and transportation.

For vehicles, the tax varies by type, with annual fees ranging from 50,000 Rwandan Francs for sedans and jeeps to 150,000 Francs for large trailers.

Other vehicles, such as pick-up trucks, microbuses, minibuses, and buses, face a 100,000 Franc levy, while trucks and small trailers are charged 120,000 Francs annually.

These levies, both on fuel and vehicles, must be declared and paid to the tax authority by December 31 each year, with fuel levies collected at customs in accordance with existing customs laws.

Certain vehicles, including those owned by the government, embassies, and international organizations with agreements in Rwanda, are exempt from these levies.

This provision sparked debate, with Deputy Christine Mukabunani questioning the fairness of exemptions, arguing that all vehicles using public roads should contribute to their upkeep.

“What is the justification for exempting these vehicles?” she asked. “Anyone who uses the roads should pay this levy, whether it’s a government vehicle or any other. The roads are used by everyone.”

In response, Deputy Théogène Munyangeyo, the Chairperson of the parliamentary Committee on Economy and Trade, defended the exemptions, citing international laws and agreements.

He clarified that additional exemptions, such as for people with disabilities, could be considered on a case-by-case basis.

Godfrey Kabera, the Minister of State in Charge of National Treasury in the Ministry of Finance and Economic Planning, added that non-profit organizations could also seek exemptions by submitting requests to the Minister of Finance, ensuring a structured process for special cases.

Rwanda’s Parliament has passed a new law imposing levy on gasoline, diesel, and vehicles to support road maintenance.