Rwanda Reintroduces VAT on Hybrid Cars to Boost Electric Mobility

• Rwanda reintroduced VAT on hybrid vehicles to promote electric mobility.
• Hybrid vehicles will continue to benefit from import duty exemption of 25 percent.
• Hybrid vehicles will now be subject to an 18 percent VAT.
• Electric vehicles will remain fully exempted from VAT.
• Hybrid cars will pay a withholding tax of 5 percent.
• New hybrid cars with longer battery life will be subject to an age-based excise duty structure.
• Vehicles under three years old will pay 5 percent excise duty.
• Vehicles between four and seven years old will pay 10 percent excise duty.
• Vehicles eight years and older will pay 15 percent excise duty.

Source: newtimes.co.rw

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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