KIGALI, May 4 (Xinhua) -- Members of the Rwandan parliament on Thursday passed a bill exempting double taxation on commodities exchanged between Rwanda and Morocco in a bid to boost investments and trade between two countries.
The agreement on the avoidance of double taxation and tax evasion regarding income taxes between the two countries was signed in October last year, which is among the 23 bilateral agreements that were signed in 2016 between the two countries during a three-day state visit by the King of Morocco Mohammed VI to Rwanda.
The bill also proposed measures to ensure that there is no tax evasion and placed a fixed taxation on investment dividends and investment services.
"Doors have been opened for Rwandans to start business in Morocco and there is grace period of not being taxed whenever an investor comes in a country. It's now up to the Rwandan business community to increase local exports to Morocco," said Zeno Mutimura, a member of parliament.
According to the Rwanda Speaker of parliament, Donatille Mukabalisa, the bill will make it much easier for Rwandan entrepreneurs to export their products to Morocco without being taxed twice.
"Moroccan investors will also set up businesses in Rwanda which will create jobs for Rwandans which would address unemployment challenges in our country," she said.
The parliament is doing its final corrections and translation of the bill before it is approved by cabinet this year.
According to the Rwanda Development Board, over 80 companies from Morocco will invest close to 100 million U.S dollars in the eastern Africa country in sectors of energy, finance and banking, transport and logistics, information and technology, pharmaceuticals, construction and real estate.
