Types of Excise Tax

Taxable goods and services

Consumption tax is levied on the following locally manufactured products: Beers, lemonades, cigarettes, wines, spirits and mineral water made in Rwanda and telephone communication supplied by telephone communication providers operating in Rwanda are liable to Consumption tax (Excise Duty).

Consumption tax shall be levied on the following products at the corresponding rates:

Product_________________Tax rate

Juice from fruits___________ 5%
Soda and Lemonade_______ 39%
Mineral Water____________ 10%
Beer ___________________ 60%
Wine___________________ 70%
Brandies, liquors and whisky- 70%
Cigarettes ______________ 150%
Telephone Communication__ 5%
Fuel (excluding benzene),
gas oil, fuel and lubricants__ 76%
powdered milk _________ 10%
Vehicles with an engine
capacity of above 2500 cc __ 15%
Vehicles with an engine
capacity of between 1500 and 2500 cc__ 10%
Vehicles with an engine
capacity of less than 1500cc _________ 5%

The taxable value on locally manufactured products is calculated according to selling price exclusive of taxes. The tax shall be payable when the taxable products are cleared out of the factory for consumer use in case of locally manufactured products and when the taxable service provided is telecommunication services.

Declaration and payment

Factories making beers, lemonades, cigarettes, wines, spirits, juices and mineral water shall file, for each period of ten days a statement concerning excisable goods cleared out of the factory for consumer use. For purposes of implementing the Excise Duty Law, a month is divided into the following three periods:

1◦ from 1st to 10th of every month;
2◦ from 11th to 20th of every month and;
3◦ from 21st towards the end of the month.

A taxpayer is required to file his or her declaration The Declaration shall be accompanied by proof of Payment of the taxes due to the collector of the tax or his representative with in five days following the declaration period.

The law N° 26/2006 of 27/05/2006 determining and establishing consumption tax on some imported and locally manufactured products provide penalties to taxpayers to fail to observe the required provisions.