Government Seeks Shs16.8 Billion Tax Waivers For Three Companies

Nicholas Agaba·News·

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Government Seeks Shs16.8 Billion Tax Waivers For Three Companies

The Ministry of Finance has asked Parliament to approve tax waivers worth more than Shs16.8 billion for three organisations facing financial hardship.

State Minister for Finance Henry Musasizi presented the requests to Parliament on July 14, 2026.

The organisations are Uganda Printing and Publishing Corporation (UPPC), K-Roma Limited and Ankole Western University.

Deputy Speaker Thomas Tayebwa chaired the sitting.

The Tax Procedures Code Act allows the Finance minister to waive unpaid taxes after a recommendation from the Uganda Revenue Authority.

However, Parliament must approve the waiver. The minister must also establish that the taxpayer cannot clear the debt because of financial hardship.

UPPC has requested a waiver of more than Shs13 billion.

The government corporation said its revenue fell from Shs19 billion to Shs8 billion in 2002. It later dropped to Shs6 billion.

The ministry said the decline had weakened the corporation’s operations.

UPPC also has large unpaid bills from its clients. More than 90 per cent of its customers are government entities.

More than half of the outstanding payments have remained unpaid for over a year.

“The corporation’s obsolete machinery has reduced productivity and competitiveness, resulting in loss of business to cheaper competitors, particularly on Nasser Road,” the ministry said.

The ministry also requested a Shs1.8 billion waiver for K-Roma Limited, the manufacturer of Bella Wine.

The company’s cash reserves fell from Shs13 million in 2023 to Shs4.3 million in 2025. Its cash flow remained negative during the three years.

“The taxpayer attributes the financial difficulties to a decline in sales, partly arising from the post-Covid-19 operating environment,” the ministry said.

K-Roma also faces pressure to develop its land in Namanve Industrial Park. The Uganda Investment Authority could withdraw the land if the company fails to develop it.

Ankole Western University has requested a waiver of Shs1 billion.

The ministry linked the university’s financial problems to a religious and political dispute with Ankole Diocese between 2013 and 2015.

The dispute caused a breakdown in governance and created rival university councils.

The ministry said the crisis damaged public trust and reduced student enrolment.

The Covid-19 pandemic also disrupted university operations and forced the institution to restructure its loans.

Ankole Western University owed more than Shs2.8 billion by December 31, 2025.

Some MPs questioned the criteria the government uses to select organisations for tax waivers.

Mr Musasizi promised to present details explaining how taxpayers can qualify.

“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,” he said.

Mr Tayebwa referred the requests to Parliament’s Finance Committee for scrutiny.

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