Members of the Chamber of Deputies in Rwanda have approved the government’s proposal to reduce consumption tax on alcohol beverages brewed locally.
The MPs passed a draft law which Finance Minister, Uzziel Ndagijimana, presented to Parliament early this month.
The draft law reduces the consumption tax rate on beers and wines made using locally produced raw materials.
Once published in the Official Gazette, the approved law will lower duties levied on beers whose local raw material content, excluding water, is at least 70 per cent by weight of its constituents.
The excise tax on the beers will be set at 30 per cent, down from the 60 per cent rate.
The same will apply to wines.
Ndagijimana argues that if the amendments to the consumption tax law are published, big brewers in the country like SKOL and Bralirwa would be encouraged to use cereal agricultural products already found in Rwanda.
And this would mean working more with farmers to massively produce them.
Ndagijimana explained that Rwandans stand to gain from the changes because money being spent on importing the raw materials will be spent in Rwanda.