Rwanda’s tax reforms aim to boost domestic revenue for national development, particularly through the implementation of NST2. New levies and VAT reintroductions will fund infrastructure projects like road maintenance and support tourism development. The reforms also promote sustainability by taxing goods such as alcohol and gambling, while incentivizing electric vehicle use. However, SMEs may face higher operating costs, potentially impacting competitiveness, and there’s a growing risk of informal market expansion. To ensure continued economic growth, the government needs balance taxation with investment incentives and regularly assess the reforms’ impact on private sector, and consumers.