List: 6 companies that benefited from Shs9.5 billion in tax waivers

Parliament has approved tax waivers amounting to over Shs9.5 billion for selected local investors for the financial year 2024/2025.

This follows the adoption of the report from the Committee on Finance, Planning, and Economic Development on the approval of the waivers.

Presenting the report on Thursday, February 20, 2025, Committee Chairperson Amos Kankunda highlighted the tax liabilities of several universities and private businesses that had applied for relief.

The waivers, granted under Section 40(1) of the Tax Procedures Code Act, 2014, were based on financial constraints and the strategic role of the entities in economic development.

Henry Musasizi, the Minister of State for Finance (General Duties), who moved the motion, assured Parliament that all organisations granted the waivers had been thoroughly vetted and met the necessary qualifications.

However, Kankunda cautioned that Uganda continues to lose substantial revenue through tax exemptions, pointing to a Shs2.9 trillion shortfall in tax expenditures in the last financial year alone, representing 12.5% of total revenue collected.

Companies and institutions that benefited

The approved tax waivers include:

• J2E Investment Corporation Ltd – Shs2.7 billion in unpaid Value Added Tax (VAT) resulting from government delays in settling payments for construction projects.

• M/S Nicontra Ltd – Shs931 million in tax arrears affected by Uganda Revenue Authority (URA)’s payment allocation rules.

• Nkumba University – Shs4.4 billion relief due to declining student enrolment and a drop in tuition revenue.

• Busoga University – Shs783 million following the government’s decision to take over the institution.

• Makerere Business Institute – Shs239 million, citing tax compliance challenges caused by the COVID-19 pandemic.

• Kisiizi Hospital Power Ltd – Shs77 million to support its role in supplying affordable electricity to rural communities.

MPs urge more support for struggling businesses

Speaker Anita Among called on Members of Parliament to ensure that their constituents are aware of the benefits and opportunities they are entitled to.

Kampala Central MP Muhammad Nsereko proposed that more consideration be given to small and medium enterprises (SMEs), including removing punitive tax penalties that he said were stifling economic growth.

Kankunda further noted that any entity facing financial distress and seeking a tax waiver could apply through the Uganda Revenue Authority (URA) for consideration.