- The request comes amidst growing scrutiny and controversy. A recent report has revealed that Uganda has lost over Shs 12 trillion over the past five years due to similar tax waivers, raising concerns about the financial implications of these exemptions.
Image: Courtesy
The Ugandan government has proposed a significant tax relief measure, requesting Parliament to exempt eight entities from paying a combined total of Shs 13.391 billion in taxes. The beneficiaries of this latest waiver include notable institutions and individuals such as Nkumba University, J2E Investment Corporation Limited, Nicontra Ltd, Kisiizi Hospital Power Ltd, Busoga University, Makerere Business Institute, businessman Donati Kananura, and Peter Lokwang.
The government has justified this request by citing various challenges faced by the beneficiaries. Among the reasons listed are the adverse effects of the COVID-19 pandemic on business operations and personal health issues. This proposal is part of a broader trend of tax relief measures aimed at supporting entities struggling under financial strain.
However, the request comes amidst growing scrutiny and controversy. A recent report has revealed that Uganda has lost over Shs 12 trillion over the past five years due to similar tax waivers, raising concerns about the financial implications of these exemptions. Critics argue that such waivers undermine the country’s tax revenue and question the fairness and effectiveness of the process.
In response to these concerns, Henry Musasizi, the Minister of State for Finance,has defended the process by outlining the established procedure for granting tax waivers. According to Musasizi, entities or individuals seeking tax relief must submit a request to the Commissioner General of the Uganda Revenue Authority (URA).
The Tax Procedures Code Act, specifically Section 40(1), provides the Commissioner General with the authority to recommend cases for waivers if it is determined that recovery of the tax is impractical due to hardship or excessive cost.
If the Commissioner General supports the waiver request, it is then referred to the Minister of Finance, who presents the case to Parliament. Musasizi emphasizes that this structured process ensures that waivers are granted based on substantiated grounds and thorough evaluation.
Despite these assurances, MPs have raised questions about the criteria and transparency of the waiver process. There are calls for a more rigorous review and clearer guidelines to prevent abuse and ensure that tax relief measures serve their intended purpose without compromising the country’s fiscal health.
As Parliament reviews the request, the debate continues over the balance between supporting struggling entities and safeguarding national revenue. The outcome will likely shape future tax policy and waiver practices in Uganda.
For more updates on this story and other news, stay tuned to our coverage.