The Ministry of Finance is seeking Parliament’s approval to waive taxes amounting to Shs 607,931,933 owed by Fresh Cuts (U) Limited. This follows an admission by the Uganda Revenue Authority (URA) that the taxes in question are not recoverable.
The request was tabled by the Minister of State for Finance, Henry Musasizi, just weeks after Parliament approved a similar waiver for private businesses amounting to Shs 9 billion.
According to Musasizi, under Section 43(1) of the Tax Procedures Code Act Cap 343, URA has recommended the waiver of Withholding Tax and Income Tax liabilities amounting to Shs 256,637,126 and Shs 351,294,807, respectively, owed by Fresh Cuts (U) Limited.
“Where a taxpayer’s case is referred to the Minister by URA, and the Minister is satisfied that the tax due cannot be effectively recovered, the Minister shall, with the approval of Parliament, remit in whole or in part the tax payable by the taxpayer. The Ministry is satisfied with URA’s submission that the abovementioned tax liability cannot be effectively recovered,” Musasizi stated in a letter to Speaker Anita Among.
He further noted, “The purpose of this letter is to seek Parliament’s approval to waive the aforementioned tax liability, in accordance with the law.”
