Parliament:
Parliament has approved tax waivers totaling over Shs9.5 billion for selected local investors for the financial year 2024/2025. This decision followed the adoption of the Committee on Finance, Planning, and Economic Development’s report on the waivers.
The report, presented by Committee Chairperson Hon. Amos Kankunda on Thursday, 20 February 2025, detailed the tax liabilities of various universities and private businesses that had applied for relief. The exemptions, granted under Section 40(1) of the Tax Procedures Code Act, 2014, were based on financial hardships and the strategic importance of the entities to Uganda’s economic development.
Hon. Henry Musasizi, Minister of State for Finance (General Duties), who moved the motion, assured Parliament that all beneficiaries were properly vetted and met the waiver criteria.
However, Kankunda expressed concern over the significant revenue losses due to tax exemptions. He revealed that Uganda had foregone Shs2.9 trillion in tax expenditures in the previous financial year—equivalent to 12.5% of total revenue collected.
Approved Tax Waivers
The approved tax waivers include:
- Shs2.7 billion for J2E Investment Corporation Ltd (construction company) for unpaid VAT, attributed to delayed government payments for construction projects.
- Shs931 million for M/S Nicontra Ltd, a road construction firm, due to tax arrears affected by Uganda Revenue Authority (URA) payment allocation rules.
- Shs4.4 billion for Nkumba University, due to a decline in student enrollment and tuition revenue.
- Shs783 million for Busoga University, following the government’s decision to take over the institution.
- Shs239 million for Makerere Business Institute, due to challenges with tax compliance during the COVID-19 pandemic.
- Shs77 million for Kisiizi Hospital Power Ltd to support its role in providing affordable electricity to rural communities.
Parliamentary Debate
During the debate, Hon. Asuman Basalirwa (JEEMA, Bugiri Municipality) raised concerns about transparency and accessibility, asking how investors were selected. “How does a peasant from deep in Kabale get to know about these opportunities? Did the Committee Chairperson interrogate these issues of information and transparency?” he asked.
Speaker Anita Among responded, urging Members of Parliament to inform their constituents about available opportunities and benefits.
Hon. Muhammad Nsereko (Kampala Central) proposed that small and medium-sized businesses should also be considered for tax waivers, emphasizing the need to remove penalties that are negatively impacting the economy.
In response, Kankunda clarified that anyone facing financial difficulties and seeking a tax waiver could apply through the Uganda Revenue Authority (URA).