1.     Background

UNDP has been implementing Equanomics pilot project in Rwanda and the lessons learned, impact has paved the ground for potential effective implementation of the next longer phase project (2025- 2027), thanks to the funding from Melinda Gates Foundation through UNDP global office.

UNDP’s Gender Team and Sustainable Finance Hub have joined forces to extend the implementation of the Equanomics project to Ministries of Finance and tax administrations. This collaboration is a key endeavor in broader efforts to promote gender responsive fiscal policy and administrative reforms as well as gender responsive budgeting and public finance management in partner countries around the world in line with UNDP’s Strategic Plan and Gender Equality Strategy 2022-2025. The Strategy further outlines UNDP´s ambition to mobilize upwards of $100 billion towards gender equality including through public sources where fiscal policies and taxation are important contributors.

Fiscal policies can and should play a prominent role in advancing gender equality which is also a necessary condition to achieve the Sustainable Development Goals. This calls for gender-responsive tax and expenditure policies designed to transform existing economic structures and systems that perpetuate inequality. Such a transformation is only possible if the key public institutions responsible for fiscal governance, notably a country’s Ministry of Finance and tax administration, fully embrace gender equality as a fundamental principle and objective across all institutional functions.

Building on this vision, UNDP recently launched the EQUANOMICS initiative, a global endeavor to make fiscal policies work for gender equality and to mobilize financing for SDG 5 through public finance and fiscal governance. Under this initiative, Rwanda was selected for support in advancing the gender-responsiveness of the tax system which includes an output dedicated to implementing the Gender Equality Seal for Public Institution at the RRA.

UNDP’s Gender Equality Seal for Public Institutions is a tool to support and recognize the efforts made by public institutions towards the achievement of substantive equality between men and women. The Seal is designed to help institutions integrate gender equality into their policies, practices and operations and in the process demonstrate their commitment to promoting gender equality and fostering an enabling environment for women’s empowerment. To achieve this, the Seal works across five dimensions of institutional performance, namely (i) planning and management, (ii) gender equality architecture and capacities, (iii) enabling work environment, (iv) participation, partnerships and accountability, and (v) results and impacts of public policies. Participating institutions are provided with a process blueprint and get access to a set of implementation tools, working aids and other resources that have been adapted to the taxonomy and institutional mandates of Ministries of Finance and tax administrations.

Beyond the seal, other institutions like MINECOFIN, GMO and other relevant partners will be supported to streamline Taxation policies, gender responsive public expenditure and Gender Responsive Budgeting among other interventions.

Based on the findings from the analysis of gender responsiveness of taxes in Rwanda and general capacity needs in engendering budgeting and public finance management, these partners will be supported with a consultant to support them in their respective spaces to play their parts.

 2.     Rationale and Purpose of gender mainstreaming in RRA and MINECOFIN.

 UNDP will implement the above project in partnership with RRA which is a government revenue collection agency established in 1997 by the Parliament. RRA is charged with enforcing, assessing, collecting, and accounting for the various taxes imposed in Rwanda. The parent agency of MINECOFIN especially in terms of economic and tax policies and that’s why MINECOFIN will also be a key stakeholder in the project due to its role in tax policy reforms. UNDP already has a partnership with MINECOFIN on Integrated National Financing Framework (INFF) Financing the SDGs.

UNDP will also implement the project with GMO. Same as UNDP, the Government of Rwanda is committed to gender equality both in the Laws and policies that build a society that respect rights pf women and men for sustainable development. To ensure compliance and effective implementation of the various national, regional, and international commitments, the Government of Rwanda established the Gender Monitoring Office through the Constitution of 2003 revised in 2015, with a mandate to monitor the respect of Gender Equality principles, promote gender accountability at all levels and fight against Gender Based Violence and related injustices.

The project is also hinged on the instructions from the President of the Republic of Rwanda in January 2023 and in accordance with the updated Medium Term Revenue Strategy (MTRS) adopted in May 2022, Cabinet approved extensive tax reforms. The tax changes, which primarily focus on Corporate Income Tax (CIT), Value Added Tax (VAT), and Excise Duty, are intended to lower tax rates, extend the tax base, enhance