Parliamentary Committee Urged to Grant Tax Waivers to Ailing Entities, Establish Transparent Criteria
KAMPALA, UGANDA – A formal request has been presented to the Parliamentary Committee on Finance, Planning and Economic Development, seeking tax waivers for three entities currently facing significant financial and operational hurdles.
The petition, which was presented to the Committee, highlights the plight of the Uganda Printing and Publishing Corporation (UPPC), City Harvest Electrical Installation Supply & Repairs Ltd, and the Diocese of Northern Uganda. According to the submission, these entities have accumulated substantial tax arrears over time and are now struggling to meet their tax obligations, with some facing difficulties severe enough to threaten the continuity of their operations.
The presenter informed the Committee that despite entering into Memoranda of Understanding (MoUs) with the Uganda Revenue Authority (URA) to settle liabilities through installment payment arrangements, persistent financial and operational constraints have made it difficult for the entities to honor the agreed schedules.
A primary factor attributed to these challenges is the delay and difficulty in recovering payments from clients, including government institutions. This situation has significantly affected the entities’ cash flow and their ability to remain tax-compliant.
During the session, an appeal was made to the Chairperson and Members of the Committee to give due consideration to the proposed tax waivers. The relief was framed as a necessary measure to safeguard the continued operations of the affected entities and provide them with an opportunity to recover financially and contribute to the economy.
Beyond the specific waivers, the Committee was also called upon to establish clear, transparent, and well-defined criteria for granting tax waivers to struggling businesses and institutions with the potential to recover and operate sustainably.
Emphasizing the importance of a structured approach, the presenter noted that such a framework would balance tax compliance with the need to protect viable enterprises, preserve operations, and support economic growth. It was argued that a well-defined policy would ensure that tax relief is extended responsibly to deserving entities, particularly those whose recovery and continued operation could deliver broader economic and institutional benefits.
Key Points Presented to the Committee:
· Entities in Question: Uganda Printing and Publishing Corporation (UPPC), City Harvest Electrical Installation Supply & Repairs Ltd, and the Diocese of Northern Uganda.
· Core Issue: Substantial tax arrears threatening operational continuity.
· Previous Attempts: MoUs with URA for installment payments, which have been difficult to honor due to cash flow issues.
· Root Cause: Delays in payment from clients, including government institutions.
· The Ask: Granting of tax waivers to provide financial relief and allow for recovery.
· Policy Recommendation: Creation of transparent criteria for future tax waivers to support viable but struggling entities.
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