The resolutions were adopted during a Cabinet meeting chaired by President Paul Kagame at Urugwiro Village on Tuesday, June 30.

A key outcome of the meeting was the approval of a ministerial order introducing stronger incentives for reporting cases of tax evasion as part of ongoing efforts to reinforce tax compliance and safeguard domestic revenue.

According to a communiqué from the Office of the Prime Minister, the reforms are intended to further strengthen tax administration while simplifying compliance procedures for businesses and improving stakeholder engagement in tax policy formulation through the establishment of a permanent Tax Policy Committee.

Cabinet also approved simplified conditions for extending tax holidays for deposit-taking microfinance institutions, allowing eligible institutions to continue benefiting from a zero percent corporate income tax rate. In addition, it approved an increase in the annual turnover threshold required for certification of financial statements for tax purposes, easing compliance requirements for smaller businesses.

The government said the measures are aimed at improving compliance while maintaining a more efficient and business-friendly tax system.

Separately, Rwanda already operates a Value Added Tax (VAT) Reward Scheme designed to encourage consumer participation in tax compliance. Under the existing programme, consumers who request an Electronic Billing Machine (EBM) invoice with their registered phone number receive a reward equivalent to 10 percent of the VAT shown on the receipt.

The system also includes a whistleblowing mechanism through which consumers can report traders who fail to issue EBM invoices or under-declare sales. Verified reports submitted to the Rwanda Revenue Authority (RRA) via WhatsApp on 0739008010 may result in a reward equivalent to 50 percent of the penalty imposed on the non-compliant trader.

On governance, Cabinet approved a Presidential Order relating to elections of local administrative entities and a Prime Minister's Order governing elections of members of the Executive Committees of the National Women Council, National Youth Council and National Council of Persons with Disabilities.

The updated framework is intended to strengthen representative participation from the grassroots to the national level, with emphasis on women, youth and persons with disabilities. It also introduces clearer eligibility requirements and procedures for filling vacancies, aimed at reinforcing transparency and the integrity of local leadership structures.

Cabinet further approved four draft laws authorising the ratification of financing agreements with international development partners supporting health, agriculture and social protection programmes.

These include a credit facility from Agence Française de Développement (AFD) to strengthen the resilience of Rwanda's healthcare system, as well as grant and financing agreements with the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA) covering health emergency preparedness, agricultural transformation and social protection reforms.

Cabinet also approved applications for mineral and quarry licences.

In diplomatic matters, it granted agrément to four proposed representatives, including ambassadors from Sudan and the Republic of Korea, the Chief Representative of the Japan International Cooperation Agency (JICA) Rwanda Office, and Rwanda's proposed Honorary Consul to Ireland.

Ministers also briefed Cabinet on upcoming national programmes, including the 16th cohort of Itorero Indangamirwa, the nationwide rollout of the 2026 Defence and Security Citizen Outreach Programme (DSCOP), and the upcoming Rwanda Agricultural Show in Kigali.

Cabinet was further briefed on Rwanda’s economic performance in the first quarter of 2026, which recorded 10 percent growth driven by strong performance across agriculture, industry and services.

According to the National Institute of Statistics of Rwanda (NISR), Gross Domestic Product (GDP) at current market prices was estimated at Rwf 6.3 trillion in Q1 2026, up from Rwf 5.3 trillion recorded in the same period of 2025.

The services sector remained the largest contributor to the economy at 52%, followed by industry at 24%, agriculture at 19%, while net direct taxes accounted for 5%.