Why teachers won’t be exempted from taxes

{The Minister of Finance and Economic Planning, Ambassador Gatete Claver has said that it is not easy to establish a system that will exempt teachers from paying taxes as is the case with soldiers and police personnel.}

Minister Gatete said there have to be policy guidelines first before teachers are put into the loop of a tax-free salary system. He said allowing everyone such a privilege would decelerate the country’s progress since Rwanda heavily depends on taxes for financing her national budget.

He noted this on Wednesday June 8th, 2016 during the presentation of 2016/2017 national budget responding to worries raised by parliamentarian, Uzabiriza Deborah who proposed establishing a tax-free salary for teachers to enhance their welfare.

“I am asking whether teachers can be facilitated to get a tax-free salary as it occurred to some of the sectors,” he said.

Minister Gatete said that accessing cheap loans from Umwalimu Sacco is one of the practical availed support.

“We all know that soldiers’ salaries are different from others’.That is why we established tax-free salary for them,” he said adding; “But if we establish a tax-free salary for teachers, and next time exempt women and others, it would be hard to collect ample taxes for financing the national budget,” he added.

Gatete said that teachers purchase in common markets like others since their salaries are not very meager.

The 2016/2017 national budget allocated Rwf 877.6 billion (45% of the budget) to supporting social welfare among which Umwalimu Sacco received an extra fund of Rwf 5 billion.

The 2016/2016 national budget is Rwf 1949.4 billion.