Owners of vehicles that are no longer in use or have been taken off the road could be liable for a new road maintenance levy if they do not return the number plates, according to Rwanda Revenue Authority (RRA).
ALSO READ: This is how vehicle owners will pay road maintenance levy if new bill is passed
The levy on motor vehicles for road maintenance is declared and paid annually to the tax administration not later December 31.
Follow us on WhatsApp | LinkedIn for the latest headlines
The levy is set according to vehicle categories: cars and jeeps pay Rwf 50,000; pick-ups, microbuses, minibuses, and buses pay Rwf 100,000; trucks and half-trailers, Rwf 120,000; while trailers pay Rwf 150,000.
ALSO READ: Rwanda raises vehicle registration fees: Here’s what to know
Jean Paulin Uwitonze, RRA’s Assistant Commissioner in charge of Taxpayer Services and Communications, said that owners of idle or non-operational vehicles should return their number plates to RRA to avoid being charged.
“Vehicle owners who submit their number plates will be removed from the list of those expected to pay this levy,” Uwitonze told The New Times.
“This year, the tax will be calculated from the date the law was approved in May 2025, but next year it will be applied for the full calendar year.”
ALSO READ: What you need to know about proposed levy on vehicles
In an August 29 notice about end-of-life vehicles, the RRA called on all owners of end-of-life vehicles to return their number plates and logbooks so they can be excluded from the list of liable payers.
Applications for the remission of end-of-life vehicle plate numbers, accompanied by the corresponding logbook, can be submitted through e-tax.
Once approved, applicants must return the vehicle number plates to the RRA Dubai Port Branch in Masaka, where a remittance confirmation will be issued.
ALSO READ: MPs question exemptions in newly passed vehicle levy bill
Certain vehicles are exempted from the levy, including those owned by the Government of Rwanda, vehicles belonging to high commissions, embassies, and accredited diplomats, as well as vehicles of international organizations with signed agreements with Rwanda.
The government introduced the levy to create a sustainable and equitable system for financing road maintenance, ensuring that the growing number of vehicles, including electric and hybrid models, contribute to the upkeep of national infrastructure.
An explanatory note on this law indicates that the Road Maintenance Fund (RMF) faces a significant funding shortage, which is expected to grow as Rwanda implements the second National Strategy for Transformation (NST2).
ALSO READ: A balanced approach to proposed vehicle levy is needed
The five-year program, running from 2024 to 2025, aims to transition to electric mobility to help reduce greenhouse gas emissions by 38 percent.
According to the 2024 Statistical Yearbook released last week by the National Institute of Statistics of Rwanda (NISR), between 2021 between 2023, the total number of registered vehicles increased by 18 percent to 330,166.
They include 218 tractors, 2,892 buses, 14,496 trucks, 22,470 pick-ups, 6,566 special engine vehicles, 41,534 jeeps, 3,061 microbuses, 7,171 minibuses, 51,262 cars, 177,187 motorcycles, 1,636 trailers, 875 semi-trailers, 648 tricycles, and 138 forklifts.
The number of registered trucks rose from 11,397 in 2021 to 14,496 in 2023, jeeps from 34,622 to 41,543, and motorcycles from 141,532 to 177,187 over the same period.
Electric vehicles increased gradually from 19 in 2020 to 512 in 2024, while hybrid cars rose from 28 in 2021 to 6,660 in 2024. Registered buses also grew from 2,084 in 2021 to 2,892 in 2023.