On Tuesday, April 29, 2025, Rwanda’s Parliament approved a draft law amending Law No. 027/2022 of October 20, 2022, which established taxes on various revenues — popularly known as the profit tax law.
The newly passed draft law raises the tax on gross gambling revenue from 13% to 40%. Additionally, the withholding tax on gambling winnings increases from 15% to 25%.
The Parliament’s Budget and National Assets Committee presented the proposed changes to the Chamber of Deputies before the final vote. Committee Chairperson, Madam Uwamariya Odette, explained that the government introduced these new tax rates to better regulate the gambling industry.
However, some MPs expressed concern, suggesting that gambling should be banned altogether rather than merely taxed. MP Ntezimana Jean Claude argued that by taxing gambling, the government implicitly legitimizes it, despite its harmful social consequences.
He stated: “In truth, we should be finding ways to eliminate gambling altogether and encourage citizens to earn through hard work rather than relying on games of chance.”
Through this law, the government reiterates its commitment to tax reform as part of a comprehensive tax modernization strategy, aiming to raise domestic revenue. By 2035, under Vision 2050, Rwanda targets a GDP-to-domestic revenue ratio of 21.5%.
Some lawmakers suggested additional improvements to the bill. Beyond gambling taxes, the amendments also introduce levies on digital services and adjustments to value-added tax (VAT), aligning with the broader objectives of Rwanda’s NST2 development strategy.
