Rwanda Imposes Levy On Imports Packaged in Plastics

Imported goods packaged in plastic materials and single-use products will pay an extra tax starting in July, Yusuf Murangwa, the Rwanda’s Minister of Finance and Economic Planning, said on Tuesday, February 11 a day after the government approved new tax reforms.

The levy, designed to support the collection and recycling of imported plastics, is equivalent to 0.2% of the value of the imported goods, Murangwa said at a news conference explain the new reforms.

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The increment is in accordance with a 2019 law banning on single-use plastics, which stipulates an environmental levy to be imposed on imported goods packaged in plastic materials or single-use products.

“The levy is timely because local manufacturers who package their goods in plastic materials were paying a levy of Rwf120 for every kilogramme of products. However, imported goods packaged in plastic materials were not paying any levy,” the minister explained.

“It would not be fair if local manufacturers were the only ones paying the levy.”

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The fee charged to local manufacturers is used for the collection and recycling of plastics.

Murangwa assured that the 0.2% levy for importers of goods packaged in plastics will be higher compared to what local manufacturers are charged.

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“In Rwanda, local manufacturers pay Rwf120 per kilogramme of products they package in plastics. This is lower compared to the levy that will be charged on imported goods packaged in plastics,” Murangwa noted.

Prudence Sebahizi, the Minister of Trade and Industry, reiterated that the delayed environmental levy was unfair. He added however that the price of imports could increase as importers could seek to cushion against the added charge.

“Local manufacturers were not allowed to package their products in plastics, while importers were allowed to bring goods packaged in plastics without paying any levy. This was unfair,” Sebahizi said.

“We hope that with the new levy, the price of imported products packaged in plastics will increase by 0.2%, and consumers will choose which to buy based on prices,” he said.

He added that local industries, which use single-use plastic bottles, were being charged a levy to be allowed to import such items for packaging bottled water.

However, those who import water or juice already packaged in the same single-use plastic bottles were not being charged any levy.

“This means that locally processed water was sometimes more expensive, while imported water packaged in plastic bottles from Kenya or Uganda was cheaper, which was not fair. The 0.2% levy is timely,” he explained.

The 2019 law bans local manufacturing plastic carry bags and single-use plastic items.

However, Rwanda Environmental Management Authority (REMA) has developed guidelines for the procedures and conditions required to grant an exceptional permission for manufacturing, use, importation, or sale of single-use plastic items or packaging goods in single-use plastics.

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Applicants for the permission include manufacturers of goods that require plastic materials for packaging, importers or manufacturers of home-compostable single-use plastics, and users of single-use plastic items.

Applications for the use of single-use plastic items are accepted for items exclusively meant for medical use, agricultural use, waste collection, sanitation, use in the construction industry, and others.

The guidelines also state that products such as foodstuff, drugs, and medical equipment, which easily lose quality if they are not packaged in plastic, can be packaged in plastics.

However, producers must sign an agreement with the Ministry of Environment on the management plastic packages, including their collection and transportation to recycling plants.

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