Rwanda enacts tariff on incoming plastic materials.
Zeroing in on Plastic: Rwanda Imposes a Tax on Plastic-Packaged Imports
Brace yourself, world! Rwanda, a pioneer in the global fight against plastic pollution, has ratcheted up its game, imposing a tax on plastic-packed imports.
Skip the drama and head to the scene on April 30, 2025, where the Rwandan government confirmed that their Chamber of Deputies passed a law implementing a 0.2% environmental tariff on imported goods wrapped in plastic materials.
This latest addition to the books aligns with a 2019 law restricting the manufacture, import, use, and sale of plastic carry bags and single-use plastic items, taking a leaf out of the law's fifth article, which mandates an environmental tax on imported items packaged in plastic.
In a press release that celebrated other tax reforms, the government referred to this law as an initiative to "promote a self-sustaining economy while minimizing the burden on Rwandans."
A Timely Move
Finance Minister Yusuf Murangwa first hinted at this tariff earlier in the year, during a press conference, confirming that all imported plastic-packed goods would be subject to a 0.2% of the customs value levied. He further explained that this move was "prompt," as local manufacturers were obligated to pay RWF 120 (6 pence) per kilogram of a product packaged in plastic - used for waste collection and recycling - while foreign goods weren't taxed.
Trade and Industry Minister Prudence Sebahizi concurred, stating that this disparity had artificially inflated prices for local manufacturers. He remarked, "Locally processed water was sometimes more expensive, while imported water packaged in plastic bottles from Kenya or Uganda was cheaper, which was not fair." Sebahizi also pointed out that the new tariff would offer consumers more choices, as the price of imported plastic-wrapped goods would increase by 0.2%.
Exceptions
Following the 2019 law banning single-use plastic items and goods packaged in plastic, Rwanda's Environment Management Authority (REMA) set forth guidelines for exceptional circumstances that allowed for the use of plastic items exclusively for medical, agricultural and forestry, industrial and construction, printing purposes, waste collection, and sanitation. Perishable foodstuffs, drugs, and medical equipment required plastic packaging were also given exemptions.
The REMA mandated that manufacturers seeking to use plastic must obtain approval from the Ministry of Environment and demonstrate the absence of alternative options.
Landmark Laws
In response to the growing threats posed by plastic pollution, Rwanda became one of the first countries worldwide in 2008 to enact a law prohibiting the manufacture, import, use, and sale of polyethene bags. This legislation was expanded and updated in 2019, broadening its scope to tackle the equally harmful environmental threats posed by other types of plastic. The revised legislation intended to tackle head-on the overconsumption and disposal of single-use plastic items.
The government's increased efforts to combat the plastic menace are part of its National Strategy for Transformation (NST), in its second stage for the 2024-2029 period, which aims to bring Rwanda closer to Vision 2050, a target of sustainable economic growth, prosperity, and high quality of life for all citizens.
- In alignment with the environmental guidelines set forth by Rwanda's government, the Finance Minister, Yusuf Murangwa, announced a 0.2% tax on imported goods wrapped in plastic materials as early as 2025.
- As the science of climate-change continues to underscore the importance of protecting the environment, Rwanda's announcement of plastic taxes serves as a significant step in the global industry's move towards reducing plastic pollution.
- In the finance sector, this new tax on imported plastic-packed goods will contribute to Rwanda's goal of promoting a self-sustaining economy while minimizing the burden on its citizens.
- Prudence Sebahizi, Rwanda's Trade and Industry Minister, highlighted the disparity in pricing between locally manufactured goods and imported plastic-wrapped goods, praising the proposed tax as a way to offer consumers more choices and level the playing field.
- Recognizing the importance of protective exceptions, the Rwanda Environment Management Authority (REMA) has published guidelines for specific industries like medical, agricultural, forestry, and construction, allowing for the use of plastic items in certain circumstances.
