The Minister of Finance, Henry Musasizi has asked Parliament to consider tax waivers for three entities struggling to meet their tax obligations, citing financial and operational challenges that threaten their continued operations.
Musasizi presented the request to the Parliamentary Committee on Finance, Planning and Economic Development, seeking relief for the Uganda Printing and Publishing Corporation (UPPC), City Harvest Electrical Installation Supply & Repairs Ltd and the Diocese of Northern Uganda.
The minister told the committee that the entities had accumulated substantial tax arrears and entered into memoranda of understanding with the Uganda Revenue Authority (URA) to clear their outstanding liabilities through instalment payments.
However, he said persistent financial difficulties had made it hard for them to meet the agreed payment schedules.
Musasizi attributed the challenges partly to delays in recovering payments from clients, including government institutions, which have affected the entities’ cash flow and ability to settle their tax obligations.
He urged the committee to consider the proposed waivers as a way of easing the financial pressure on the entities, safeguarding their operations and giving them an opportunity to recover and continue contributing to the economy.
The minister also called for clear and transparent criteria to guide the granting of tax waivers to struggling businesses and institutions with the potential to recover and operate sustainably.
He said a structured framework would help balance tax compliance with the need to preserve viable enterprises and support economic growth, while ensuring that relief is extended responsibly to deserving entities.
The committee is expected to consider the minister’s request as part of its scrutiny of the proposed tax relief measures.
