Climate change

Rwanda removes all taxes on importation and selling of electric cars

Rwanda has become the first country in Africa to remove all taxes on the importation of electric cars and charging systems into the country. 

And therefore, any person importing an electric car will pay zero taxes.

The Rwandan Cabinet in Rwanda has already approved the requirements in what they described as an “effort to greenhouse gas emissions”.

In a statement, the Cabinet has approved “VAT zero rate for electric and hybrid vehicles and charging stations” in Rwanda.

At the same time, there shall be an “exemption of import and excise duties on imported electric and hybrid vehicles and electric charging station equipment.”

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The move by Rwanda also means the price of electric vehicles will be affordable since businesses will not be paying taxes.

The Government of Rwanda has prioritized the transition to e-mobility for all vehicle types. 

The Rwanda Development Board initiated several incentives including a preferential corporate income tax rate of 15%, reduced electricity tariff at the industrial level, and in some instances, rent-free land for the installation of charging infrastructure.

With an annual vehicle growth rate of 12 percent, the incentives lower the bar for electric vehicles and motorcycles uptake rather than the use of fuel-powered engines.

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