Green Party Warns Against Proposed Tax Hikes, Citing Economic Strain on Citizens
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The Democratic Green Party of Rwanda (DGPR) has urged the government to reconsider its recent plans to broaden the tax base, warning that increased taxation could negatively impact the economy and the welfare of Rwandans.
Speaking at the opening of the party’s two-day political bureau meeting held in Kigali on Saturday, DGPR President Dr. Frank Habineza criticized a proposed 3% levy on accommodation services—hotels, motels, apartments, and lodges—arguing that such measures, though well-intentioned, could hurt Rwanda’s growing tourism sector.
“We don’t oppose taxes, but we don’t support tax hikes that end up punishing the economy,” Habineza said. “When taxes are too high, people resort to evasion and fraudulent practices. Taxes should be fair and minimal to encourage compliance and economic productivity.”
The proposed tax, which would be collected monthly in a manner similar to value-added tax (VAT), is one of several government initiatives aimed at increasing domestic revenue collection.
Government plans to bring in up to 14 new taxes, spread over the period beginning with the financial year 2025-26, over the following five years. The Finance Ministry expects to generate up to Rwf 350billion, or at least Rwf 70bn annually.
However, the Green Party insists that new taxes must strike a balance between fiscal needs and social welfare.
The remarks came during a meeting that also served to formally endorse new party leaders who were recently elected to fill internal vacancies.
Many of these gaps emerged after DGPR members were either nominated to serve in the national government or promoted within the party structure.
The leadership retreat featured training sessions on the party’s core ideology—centered around green growth, democratic governance, and non-violence—and emphasized the role of grassroots policy engagement.
Habineza encouraged the newly endorsed leaders to gather insights from communities and develop policy briefs that reflect citizens’ priorities.
“It is our duty to advocate for human rights, environmental protection, access to water, and social services—without violence. But we must do this by starting from the ground up,” he said.
The party’s geopolitical concerns were also part of the agenda. Habineza addressed the current diplomatic rift between Rwanda and Belgium, following Belgium’s decision to back international calls to cut aid to Rwanda over regional tensions with the Democratic Republic of Congo (DRC). Rwanda recently severed ties in response.
“The Belgians mishandled the DRC-Rwanda conflict. What was needed was diplomacy, not political pressure or aid withdrawal,” Habineza said. “We support the government’s firm stance. Belgium should have engaged in dialogue and examined the root causes of the conflict.”
The party expressed concern that the breakdown in relations with Belgium—whose development agency, Enabel, has been a key partner in green initiatives—could impact environmental projects in Rwanda.
Notably, Enabel has supported the TREPA project, which aims to restore over 60,000 hectares of degraded land in Eastern Province through reforestation, agroforestry, and erosion control.
It also collaborates with the Green Climate Fund, IUCN, and the government to promote sustainable land management and urban development under the Urban Economic Development Initiative (UEDi).
Despite the uncertainty around international funding, Habineza reaffirmed the party’s commitment to advancing a green development model, both independently and in collaboration with public institutions.
The DGPR continues to advocate for inclusive policy-making and sustainable growth, positioning itself as Rwanda’s leading voice for eco-conscious governance.
