Finance Minister Henry Musasizi has asked Parliament to consider tax waivers for three entities facing financial difficulties, including the Uganda Printing and Publishing Corporation (UPPC), City Harvest Electrical Installation Supply & Repairs Ltd and the Diocese of Northern Uganda.
Musasizi presented the request to the Parliamentary Committee on Finance, Planning and Economic Development, saying the entities had accumulated substantial tax arrears and were struggling to meet their obligations to the Uganda Revenue Authority (URA).
He told the committee that the affected entities had entered into memoranda of understanding with URA to clear their outstanding tax liabilities through instalment payment arrangements. However, persistent financial and operational challenges had made it difficult for them to honour the agreements.
The minister attributed some of the difficulties to delays in recovering payments from clients, including government institutions. He said the delays had disrupted cash flows, leaving the entities unable to meet their tax obligations as agreed.
Musasizi appealed to the committee to consider the proposed waivers, arguing that the relief would help the entities sustain their operations, recover financially and continue contributing to the economy.
He also urged the committee to establish clear and transparent criteria for granting tax waivers to struggling businesses and institutions with the potential to recover and operate sustainably.
According to the minister, a structured framework would help balance tax compliance with the need to protect viable enterprises and institutions from financial collapse.
He said such a framework would also ensure that tax relief was granted responsibly to deserving entities whose continued operations could deliver wider economic and institutional benefits.
