News

Parliament to scrutinise sh16.8b tax waiver requests for three entities

Government is seeking to waive sh13 billion owed by Uganda Printing and Publishing Corporation.

Finance minister Henry Musasizi addressing the House on July 14, 2026. (Photos by Maria Wamala)
By: John Odyek, Journalist @New Vision

________________ 

Parliament is set to review a government request seeking approval to waive about sh16.8 billion in tax liabilities owed by Uganda Printing and Publishing Corporation (UPPC), K-Roma Limited and Ankole Western University.

The requests were tabled by finance minister Henry Musasizi during the House sitting on July 14, 2026, chaired by Deputy Speaker Thomas Tayebwa.

Under Section 43(2) of the Tax Procedures Code Act, where the Uganda Revenue Authority (URA) refers a taxpayer’s case to the minister and the minister is satisfied that the tax due cannot be effectively recovered because of financial hardship, the minister may, with Parliament’s approval, remit the tax owed.

Deputy Speaker Tayebwa referred the requests to the Committee on Finance, Planning and Economic Development and asked it to report back to the House as soon as possible.

Government is seeking to waive sh13 billion owed by Uganda Printing and Publishing Corporation. According to the ministry, the corporation’s revenue declined from sh19 billion to sh8 billion in 2022 and has since fallen to about sh6 billion, reflecting operational instability.

The ministry reported that UPPC is burdened by overdue receivables, with more than 90 per cent of its clients being government entities that have delayed payments, while more than half of the outstanding debts have remained unpaid for more than a year.

"The corporation's obsolete machinery has reduced productivity and competitiveness, resulting in loss of business to cheaper competitors, particularly those on Nasser Road," the ministry said in its submission to Parliament.

The ministry is seeking approval to waive sh1.8 billion in taxes owed by K-Roma Limited, the manufacturer of Bella Wine.

According to the submission, the company’s cash position declined from sh13 million in 2023 to sh4.3 million in 2025, with negative net cash flows recorded throughout the period.

"The taxpayer attributes the financial difficulties to a decline in sales, partly arising from the post-COVID-19 operating environment. In addition, the company is under pressure to develop the allocated land in Namanve Industrial Park, failure of which may result in its withdrawal by the Uganda Investment Authority," the ministry stated.

Government is also seeking a waiver of more than sh1 billion owed by Ankole Western University.

The ministry attributes the university’s financial challenges to the religious and political crisis that affected the Ankole Diocese between 2013 and 2015, resulting in a governance breakdown and the emergence of parallel university councils.

 



"Loss of public trust, as well as the effects of COVID-19, which disrupted operations, reduced enrolment and necessitated the restructuring of existing loans, compounding the university's financial burden," the ministry said.

The ministry added that the university’s total indebtedness stood at more than sh2.8 billion as of December 31, 2025.

During debate, Members of Parliament questioned the criteria used by the government to determine which companies qualify for tax waivers.

Kalungu County West MP Gonzaga Ssewungu asked the ministry to explain the process followed in granting waivers, noting that many local companies are facing similar financial difficulties.

Kassanda North MP Patrick Oshabe questioned the basis for seeking a waiver of more than sh13 billion for UPPC when the audit had assessed the liability at sh8.5 billion.

"We need to have a discussion on who qualifies for waivers. We need to bring on board the audit process when making these considerations and also consider all the other companies and not just a few," Oshabe said.

Responding to the concerns, Musasizi committed to provide Parliament with a detailed explanation of the eligibility criteria and procedures for accessing tax waivers.

"We will provide details on how taxpayers can get waivers. It is good for transparency because we hold these roles in trust of the people who put us in these offices. It is authentic to know what we are doing," Musasizi said.

Help us improve! We're always striving to create great content. Share your thoughts on this article and rate it below.

Tags:
Parliament
UPPC
K-Roma Limited
Ankole Western University