Citizens and members of the civil society have welcomed government decision to suspend the increase of land taxes (immovable property), and have called for deeper consultations between the relevant authorities and communities as officials assess the next step.
Land taxes had last year been increased in various categories depending on the location and usage, where in some neighbourhoods it increased from Rwf80 to Rwf300 per square metre, representing an increase of approximately 257 per cent.
However, on Monday, March 15, a cabinet meeting resolved that the new land tax regime be halted until further assessment, with a new one to be announced soon.
“The 2020 land tax will be paid based on the tax rates used in 2019,” reads a short statement from the ministry of finance.
Clarifying on the decision, Uzziel Ndagijimana the Minister of Finance explained that the decision partly takes into account the tough times that Rwandans are going through, owing to the Covid-19 pandemic.
Speaking to The New Times, different citizens and civil society representatives hailed the development, but called for multi-sectoral dialogue on the land tax, before government can make new changes.
“As civil society, our stand is that we really commend the idea of halting this tax. But on top of that, we suggest that further consultations be made. Government should consider multi-sectoral dialogue on property tax law to come up with a common understanding on its implications to the economy and taxpayers,” said John Bosco Nyemazi, the Executive Secretary of Rwanda Civil Society Platform.
He added that more efforts should be put into citizen awareness so that Rwandans can follow the processes and thus make timely contribution in terms of ideas, rather than having to wait and complain at the time of implementation.
“The fact that public reaction to this law only came out at the time of implementation shows there are gaps in terms of awareness about laws, specifically tax laws. So I think this is where civil society can partner with relevant authorities such as the Ministry of Finance and Rwanda Revenue Authority.”
Jean Nepo Nizeyimana, a resident of Kicukiro District, also welcomed the development, saying the decision will assist the citizens in their endeavours to recover from the difficulty of the pandemic.
“It is a good decision. The tax was prohibitive and worrying; we can now focus on developing ourselves,” he said.
“Where I stay, I used to pay about Rwf87,000 per year. Under the new regime it had come to Rwf300,000. It is not easy to get this money during this kind of situation,” he added.
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Annie Kairaba, the Director of Rwanda Initiative for Sustainable Development (RISD), told The New Times that the “tax was way too high,” adding that it is good that government has heard the voices of the population and took a decision to halt it.
“The only problem is that it (the halting) sounds temporary. People are in suspense,” she said, adding her voice to Nyemazi’s to call for proper consultations with citizens as the next decisions are being made.
Veneranda Nyirahirwa, a Member of Parliament, said she has confidence that government will make a decision that is of the interest of citizens when the new tax regime is agreed upon.
“After the period of assessing the tax, and considering how the economic situation evolves, I believe that government will come up with changes that will be favourable for citizens,” said Nyirahirwa, who is also the Chairperson of the Standing Committee on Agriculture, Livestock and Environment.
The new tax rate was to supposed apply during the payment for the year 2020 whose deadline was due on March 31 but this has been extended to April 30 to allow people to meet the fiscal obligation.
“For taxpayers who already paid land tax based on the 2021 tax rates, the extra amount paid will be considered for the next tax cycle (2021),” reads a statement from the finance ministry.