PARLIAMENT wants finance minister Syda Bbumba to explain why the Government has allocated billions of shillings to city businessman Hassan Basajjabala before he pays over sh1b owed to the Uganda Revenue Authority (URA) in taxes.
The tax body has recommended that two of his companies, Sheila Investment and Victoria International Trading, dealing in real estate and markets, be de-registered for non-payment of taxes.
Sheila Investment owes URA sh93m while Victoria owes the tax body an additional amount in corporation tax, pay-as-you-earn and VAT.
Recently, URA Commissioner for Domestic Taxes, Moses Kajubi, said they had failed to recover the money because the companies had changed location and could not be traced.
“The finance minister is in charge of these entities. It is surprising that although the man has not been remitting taxes, causing financial loss, the Government has gone ahead to allocate him more money,” the committee chairman, Reagan Okumu, said.
MPs at their sitting last week directed URA to recover the money from the finance ministry before the Government transfers the sh4.4b grant to his university.
The Government this financial year allocated sh4.4b to Kampala International University Bushenyi Campus, owned by Bassajjabalaba.
MPs on the Parliamentary committee on commissions, statutory and state enterprises also want Bbumba to explain the policy on tax waivers.
“We also need an explanation on the Government’s policy on tax waivers, how the ministry derives at it and whether URA plays any role in determining it,” said Okumu.
Other issues Bbumba is expected to explain include the performance of the Permanent Secretary, Chris Kassami, on the URA board and how often he has attended the meetings in the last three years. URA boss Allen Kagina is also expected to attend the committee meeting.
