The Ministry of Finance and Economic Planning (MINECOFIN) has informed taxpayers with taxable plots of land that the 2021 land tax will be paid using the same tax rates of 2020. The communique signed by Minister of Finance and Economic Planning, Uzziel Ndagijimana, is based on the cabinet resolution of December 14, 2021. “The deadline of December 2021 for payment of 2021 land tax is extended to January 31, 2022,” reads the announcement. “As was communicated last year, taxpayers who paid extra land tax in 2020, the extra tax paid will be deducted from 2021 tax. This will be calculated during the declaration of the 2021 tax,” the ministry explained in the communique. Jean Paulin Uwitonze, Deputy Commissioner for Taxpayer Services at Rwanda Revenue Authority told The New Times that the tax on immovable property was supposed to be paid not later than December 31, 2021. “ However, we realized that the remaining 15 days were not enough and therefore the deadline has been extended,” he said. He said that although the cabinet, on Tuesday, approved a ministerial order setting standards rates and other criteria to determine the tax rate applicable to plots of land, 15 days were also not enough to come up with new tax rates and put in a system to be used. “The ministerial order will determine the range of new rates meaning the minimum and maximum rate. Then district councils use the given range to determine which rates will be charged in their respective districts which they return to us and put in the system,” he said. MINECOFIN has said that the new land tax rates will be announced in 2022 to be applied for land tax due in December next year. The move to raise land taxes had stirred public outrage in December 2020 and early this year the government suspended the increase of land taxes. The government had initially raised land taxes from Rwf80 per square meter to Rwf300 per square meter— an increase of approximately 257 per cent. With the approved ministerial order, the government is reviewing land tax rates to be used next year starting December 2022.
