Sugar imports to be taxed, traders warned against hiking prices

{The Ministry of Trade and Industry has revealed that it’s undergoing a process of reforming the way taxes on sugar imports are paid in the near future.}

Kabuye sugar plant is the only sugar manufacturer in Rwanda but the produced quantity is insufficient to satisfy the market across the country.

This prompts Rwanda to import sugar from across the world without taxing its importation.

This was revealed by the Minister of Trade and Industry, Kanimba François during an open discussion with members of the Liberal Party held last Sunday.

Minister Kanimba explained that Rwanda had waived off taxes from sugar imports since it is a basic need that is essential in daily lives of Rwandans.

Kanimba noted that the current project in the offing, of constructing another sugar factory in the country may prompt the government to levy a 25% in taxes.This is a small levy compared to what other countries charge—at 100% in other East African Countries. “We can’t allow continued sugar importation from India, Brazil at 0% taxes. We want to promote sugar production in Rwanda,” he said.

In an interview with IGIHE, the Permanent Secretary in MINICOM, Hategeka Emmanuel said that the process of establishing the exact taxes is ongoing talks but warned traders against hiking sugar prices basing on speculation.