The government has presented the Income Tax (Amendment) Bill, 2025 to Parliament, proposing an extension of the tax exemption for the Bujagali Hydro Power Project until 30 June 2025.
The bill, introduced by the State Minister for Finance (General Duties), Hon. Henry Musasizi, on Tuesday, 4 February 2025, seeks to revise section 21 of the Income Tax (Amendment) Bill, 2025 to grant Bujagali an additional one-year tax relief.
Musasizi urged Parliament to handle the bill swiftly and finalize it within a fortnight.
Between 2018 and 2021, the government accorded the power company similar tax exemptions. However, in 2023, Parliament declined the government’s proposal to grant Bujagali another five-year tax waiver.
During the same session, presided over by Deputy Speaker Thomas Tayebwa, the government also introduced the Excise Duty (Amendment) Bill, which seeks to impose a levy of Shs1,500 per liter on un-denatured spirits with an alcoholic content of 80 percent or more, derived from domestically sourced raw materials.
Additionally, the bill proposes a tax of Shs1,700 per liter on locally produced spirits with an alcohol content of less than 80 percent by volume.
Un-denatured alcohol refers to ethanol that has not been blended with other substances to render it unsuitable for human consumption. It is a clear, flammable liquid widely used in scientific research, healthcare, and manufacturing.
