City of Kigali skyline. The cabinet approved the national urbanisation police. File Photo.
A Cabinet meeting chaired by President Paul Kagame on Monday approved key legal instruments to guide the implementation of medium-term domestic resource mobilisation measures, including taxes and levies aimed at strengthening financing for the National Strategy for Transformation (NST 2).
Among the major reforms in the country’s tax policy is the introduction of new levies and Value Added Tax (VAT) on previously exempted products, to be implemented over the next five years.
According to the Minister of Finance and Economic Planning (MINECOFIN), the new tax reforms will be introduced gradually to ensure taxpayers do not feel the impact too abruptly and have sufficient time to understand the rationale behind the changes.
The minister emphasised that the reforms were timely and would modernise a tax regime that had remained unchanged for a long time.
The Cabinet also approved the Energy Policy, which outlines new measures and approaches to enhance energy efficiency.
This policy integrates new energy sources, including nuclear and other renewables, to support the country’s development ambitions.
Additionally, a new National Urbanisation Policy, replacing the one adopted in 2015, was approved. This policy focuses on the efficient use and management of natural resources, particularly land, while promoting sustainable development.
It reinforces strategies for implementing urban areas and human settlements in a more sustainable and environmentally conscious manner.
In other developments, the Cabinet was briefed on the recent fighting in Goma, Democratic Republic of the Congo (DRC), and extended condolences to the families of the 16 Rwandan civilians in Rubavu District, Western Province, who were killed by cross-border shelling.
The meeting also received an update on the facilitation provided by the Government to various groups, including United Nations personnel, who were evacuated from Goma and granted safe passage through Rwanda.
The Cabinet took note of the joint East African Community (EAC) and Southern African Development Community (SADC) summit held on 8 February 2025, which aimed to reset the path towards a political solution to the conflict in eastern DRC.
The session was further briefed on the progress and performance of the 2025A agricultural season.
It was observed that the season yielded a good harvest due to active farmer participation and government interventions to enhance crop productivity, promote climate-resilient crops, and improve post-harvest management practices.
The Government encouraged farmers to maintain optimal quality and maximise production for the 2025 season.
