Rwanda Tightens Gambling With Tax Laws.

Rwanda’s Parliament passed a new income tax bill that significantly increases taxes on the gambling sector, aiming to regulate responsible gambling and boost government revenue.

The legislation raises the tax on Gross Gambling Revenue (GGR) from 13% to 40% and increases the withholding tax on players’ winnings from 15% to 20%. These measures aim to curb border tax evasion, intended to strengthen Rwanda’s financial sector.

The reforms followed the backing of the Rwandan Cabinet in February, when a package of tax policy measures was proposed to support the country’s economic recovery and reduce reliance on foreign aid.

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Announcing the changes, Minister of Finance and Economic Planning Uzziel Ndagijimana explained that the sharp 27-percentage-point rise in the GGR tax rate is necessary to ensure that the gambling industry contributes fairly to the national budget. He also stated that the increase in the withholding tax on winnings would help deter tax evasion by players.

At the same time, the casino operators will face an 18% deduction from their winnings, a measure intended to further boost state revenue.

Gambling in Rwanda has seen steady growth over the past decade. Once unregulated, the sector was formalized with the introduction of the 2011 law regulating gaming activities, which imposed licensing and operating requirements on operators. Today, the government continues to tighten oversight to enhance industry quality.

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