Rwanda’s tax revenue set to drop to $1.5b

Rwanda’s revenue collection is projected to reduce to Rwf1.4 trillion ($1.5 billion) in the 2020/2021 financial from Rwf1.6 trillion ($1.6 billion) projected in the 2019/2020 revised budget, as a result of the Covid-19 pandemic which has halted the economy since March.

Taxable avenues in travel, hospitality, entertainment, and tourism were all halted, while disruptions were felt in supply chains that support export in mining, agribusiness and textile.
Due to these Covid-19 related disruptions, non-tax revenue is also expected to decline to Rwf184.3 billion ($197 million).

The fall in revenues will drastically hamper public development projects and force the government to seek more foreign aid and assistance to foot its annual budget.

Minister of Finance, Uzziel Ndagijimana, told parliamentarians that the proposed Rwf3.2 trillion ($3.4 billion) total government budget for fiscal year 2020/2021 will have to be supplemented by grants worth Rwf492.5 billion ($526 million) and external loans of Rwf783.4 billion (about $837 million).

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