The decision follows public concerns that the newly imposed taxes were higher.
The new tax went into effect from July last year as stipulated by the law on immovable property of 2018.
Minister Ndagijimana has told RBA that an assessment will be conducted next year to review previously implemented changes. Outcomes of the assessment will be considered to determine new tax on immovable property.
The Minister also explained that the extra amount will be considered during the next tax cycle for people who had paid taxes using revised rates.
Among others, he revealed that the deadline for payment of the land tax has been extended until April 30, 2021.
The land tax has brought mixed reactions particularly among Kigali city dwellers since July 2020 when they were required to pay between Rwf 0-300 per square meter up from 0-80.
It raised concerns among residents affected by COVID-19 pandemic with fears that their land would be auctioned due to failure to clear higher taxes.
A resident of Kigali city had raised the concern to President Paul Kagame, who also tasked Minister Ndagijimana to provide clarifications. The latter assured that citizens’ worries were understood and being reviewed.
Kagame said that tax should be corresponding to citizens’ means but highlighted that it is not possible to find solutions suiting each individual.
The new tax law on immovable property indicated that people would only be taxed for additionally owned houses beyond the residential one.
The tax for non-residential house rose from 0.1 % to 1% of the asset’s total value.
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