Rwanda Government has decided to take over the resultant tax obligations affected Rwandans under AGOA suspension by USA.

The Government has said that to ensure minimal disruption to the businesses, they are putting up an adjustment facility to pay taxes imposed on the exporters for the next one year.

Rwanda Development Board CEO, Clare Akamanzi, told The New Times that this would allow firms work on accessing new markets as well as meet existing contractual obligations to the American market.

“In the meantime, for those who are going to be affected by AGOA suspension government is going to work with them to allow them to finish the orders that they were working on in the US for the next one year and we will pay the taxes for them”she said

We would not like their orders to be affected as they seek alternative markets.  We are putting in place  an adjustment facility that will allow us to have a fund to pay their taxes that will be imposed,” she said in an exclusive interview”she added

She said that the overall intention is to identify alternative markets such as Europe, Asia and the African continent that can allow duty free access.

“Our intention is to work with them to find alternative markets.  We will find duty-free opportunities in the European Union as well as Asia and Africa where we can find markets,” she noted.

The decision is made following statement from the US government claiming the suspension would take effect in 60 days (from March 31) in case Rwanda maintains its policy on used clothes, commonly known as Cagua.

Rwanda estimated that, if everything is implemented according to plan, this could create 25,655 jobs, increase exports to $43 million and decrease imports to $33 million by 2019 (from $124 million in 2015).

Fred Masengesho Rugira/Bwiza.com

 

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