The Effect of Tax Incentives on the Development of Manufacturing Industry in Rwanda

Iradukunda Bonne Esperance () and Dr. Mpakaniye Jean Paul ()

American Journal of Finance, 2023, vol. 8, issue 1, 1 - 9

Abstract: Purpose: The main objective of this research was to determine the effect of tax incentives on development of manufacturing industry in Rwanda under the period of research 2012 up to 2022. Methodology: By using Slovene's formula a sample of 344 registered manufacturing companies was extracted from 2500 registered manufacturing companies. Secondary data collected from Ministry of Finance and Economic planning annual reports. The research used quantitative data analysis for analyzing the relationship between the independent and dependent variables. Findings: The analysis showed that is statistically significant as it gave a prob>F of 0.00 and regression analysis showed that one unit increase of accelerated depreciation and loss carried forward will increase 0.03 and 10 units in the development of manufacturing industry in Rwanda. It have found that there is a positive relationship between tax incentives and development of manufacturing industry in Rwanda under the period of research where the model is capturing the variability of manufacturing industry of 93%. Research concluded that tax incentives are the key to the sustainable growth of manufacturing industry. Recommendation: The government should design policies that specifically address issues related to the sustainable growth of manufacturing industries in Rwanda.

Keywords: Tax incentives; manufacturing industry (search for similar items in EconPapers)
Date: 2023
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