KIGALI, April 19 (Xinhua) -- The Rwandan Ministry of Trade and Industry (MINICOM) on Wednesday announced a waiver of value-added tax (VAT) on maize flour and rice in a move aimed at taming skyrocketing food prices in the country.
The ministry said in a statement that a survey conducted in different markets across the country had revealed that some traders were involved in food price speculation, thereby leading to unnecessary price hikes.
"After analyzing different reasons that have affected current food price increases and following discussions held with several public institutions and private sector partners, MINICOM would like to inform the public that the Value Added Tax has been waived off on maize flour and rice," Minister of Trade and Industry Jean-Chrysostome Ngabitsinze said in the statement.
According to the statement, the ministry set retail prices for selected staple foods for Rwandans.
Short grain rice will be sold at 820 Rwandan francs (about 0.74 U.S. dollars ) per kg, long grain rice at 850 Rwandan francs per kg, basmati rice will be sold at 1,455 Rwandan francs per kg, while maize flour will be sold at 800 Rwandan francs per kg. The maximum retail price for Irish potatoes, a common dish for average Rwandans, was set at 460 Rwandan francs per kg.
Until Wednesday, a kg of maize flour cost 1,200 Rwandan francs, rice 2,000 Rwandan francs, while Irish potatoes cost 700 Rwandan francs.
Value-added tax is set at 18 percent in Rwanda.
Food prices increased at an average of 13.9 percent in 2022, which was attributed to the Russia-Ukraine conflict affecting supply chains, as well as unpredictable weather conditions, according to official data. ■
