The Ministry of Finance, Planning and Economic Development has asked Parliament to approve tax waivers totaling Shs27.78 billion for Fresh Cuts Uganda and New Plan Uganda, citing financial difficulties that have left the companies unable to meet their tax obligations.
State Minister for Planning, Amos Lugoloobi, appeared before the House Committee on Finance on Thursday, 13 August 2026, where he explained the circumstances surrounding the two requests.
Fresh Cuts Uganda is seeking a waiver of Shs8.92 billion in outstanding tax liabilities. According to Lugoloobi, the company first requested the waiver in 2025, citing financial hardship, but its tax arrears, particularly Value Added Tax (VAT), continued to accumulate.
The Uganda Revenue Authority (URA) reportedly issued demand notices and a third-party agency notice to recover the outstanding taxes, but no payments were made because of the company’s financial difficulties.
Lugoloobi said Fresh Cuts had a negative net worth of Shs22 billion in 2022 and owed DFCU Bank and IBM approximately Shs1.04 billion and Shs20.82 billion, respectively.
“High indebtedness, inadequate working capital and negative net worth” were cited by the Minister as indicators of the company’s distressed financial position and inability to settle its tax obligations.
Meanwhile, New Plan Uganda is seeking a Shs18.86 billion tax waiver following financial difficulties triggered by the termination of major contracts.
The cancelled contracts included engagements with TotalEnergies EP Uganda for cultural heritage and archaeological management and Trans-African Pipeline Consultancy Uganda Limited for geotechnical site investigation services.
Lugoloobi said New Plan Uganda was also indebted to DFCU Bank to the tune of Shs11.2 billion as of 15 February 2025, resulting in the sale of some of its properties at what he described as giveaway prices.
However, legislators questioned whether granting the waivers would genuinely revive the companies or simply reduce government revenue.
Sheema Municipality MP Dicksons Kateshumbwa questioned whether New Plan Uganda would be able to resume operations if its tax burden was removed, while Ndorwa County East MP Protazio Begumisa questioned the company’s tax compliance history, noting that it had reportedly paid income tax only twice between 2010 and 2025.
Older Persons Representative-Central James Kakooza also warned against companies using Parliament as an avenue to escape tax obligations after falling into financial difficulties. He called on URA to investigate the companies and their directors thoroughly.
Lugoloobi told the Committee that the Uganda Development Corporation (UDC) would provide financial support to the two companies once their tax disputes are resolved.
The Finance Committee is expected to consider the requests and present its report to Parliament for a decision.
