According to Rwanda's "New Times", the country's gambling industry is about to undergo a significant tax reform. Starting from September 1, the government will increase the tax rate on the total revenue (GGR) of the gambling industry from the current 13% to 40%, while completely abolishing the corporate income tax (CIT). This change is seen as part of the Rwandan government's systematic adjustment to the gambling regulatory framework, aimed at further standardizing the market and increasing national fiscal revenue.
In recent years, driven by the rapid development of digital technology and the widespread popularity of mobile payments, Rwanda's gambling industry has achieved significant expansion. To address the new form of the industry and align with international practices, the government has decided to reform the tax system, integrating the previously multiple tax types into a single GGR tax. Gambling industry expert and founder of the Lefa Foundation, Mouyelo, stated that this move not only enhances tax transparency but also provides clearer compliance expectations for licensed operators, helping to create a stable and sustainable operating environment.
Mouyelo also pointed out that Rwanda has significant advantages in mobile money penetration, digital infrastructure construction, and the upcoming digital ID system, all of which provide strong support for the digital transformation of the gambling industry. The introduction of digital IDs is expected to simplify the user identity verification process, enhance regulatory efficiency, and reduce the risk of fraud. Although the tax increase may lead to higher short-term costs for operators, in the long run, a regulated tax environment and innovative technological foundation will help push the industry towards a healthier and more modern direction.
This tax reform also reflects the Rwandan government's intention to balance fiscal revenue and industry regulation through policy adjustments. Against the backdrop of rapid growth in the gambling market, the new tax system is expected to expand the tax base while curbing illegal operations and encouraging legal operators to optimize their services and management. The Rwanda Development Board (RDB), as the industry's regulatory authority, will continue to strengthen the supervision and management of gambling activities to ensure smooth policy implementation.
As the implementation date of the new tax system approaches, local gambling enterprises are actively adjusting their financial structures and operational strategies to cope with the upcoming high-tax environment. Some analysts believe that despite significant challenges, Rwanda's gambling industry still has considerable potential for innovation and growth, driven by policy and technology.
