The Uganda Parliament has approved a tax waiver worth Shs14.98 billion for two government entities. The waiver covers Shs13.95 billion owed by the Uganda Printing and Publishing Corporation and Shs1.026 billion owed by Ankole Western University. This approval comes after the presentation of reports by Parliament's Finance Committee. The committee's report was presented by Gerald Nangoli, the Elgon North MP, and James Kakooza, the Older Persons Representative.
The Uganda Printing and Publishing Corporation has been experiencing significant financial difficulties. Finance Minister Henry Musasizi told Parliament that the corporation was facing declining and unstable revenues, deteriorating liquidity, and erosion of its business network. The Finance Committee recommended approval of the waiver, citing that keeping the government printer operational was in the public interest. However, committee member Nangoli cautioned that writing off the corporation's tax obligations without addressing outstanding debts owed to it by Ministries, Departments, and Agencies could set a dangerous precedent.
Some legislators opposed the proposed tax relief for the Uganda Printing and Publishing Corporation. Lubowa Ssebina, the Nyendo-Mukungwe MP, and Brenda Nabukenya, the Luwero District Woman MP, rejected the proposed tax relief. They pointed out that the corporation had previously benefited from a government tax waiver worth Shs4.77 billion in 2020. The legislators also questioned what they described as unequal treatment in the recovery of tax arrears.
The opposition to the waiver emerged from both government and opposition legislators. When the committee sought clarification on why the Uganda Revenue Authority could not recover the outstanding taxes from the Uganda Printing and Publishing Corporation, it was informed that the corporation was a government entity. Disposing of its assets to recover taxes owed to the government was not considered prudent.
Finance Minister Henry Musasizi made a final appeal to Parliament, urging MPs to support the rescue of the government-owned corporation in the national interest. He pledged that the government would address the challenge of delayed payments for services provided by the Uganda Printing and Publishing Corporation to Ministries, Departments, and Agencies. Musasizi also promised that more government printing work would be reserved for the corporation instead of being outsourced to private companies.
The latest approval brings the total tax waivers granted by Parliament over the past two days to Shs16.84 billion. This includes Shs1.86 billion waived for K-Aroma Limited. The tax waivers were granted following financial difficulties at the government-owned printer and leadership wrangles that disrupted the university's operations.
The tax waiver for Ankole Western University was also approved. The university had been facing leadership wrangles that disrupted its operations. With the tax waiver, the university is expected to recover from its financial difficulties. The approval of the tax waivers demonstrates the government's efforts to support its entities facing financial challenges.
Key points
- The Uganda Parliament has approved a Shs14.98 billion tax waiver for the Uganda Printing and Publishing Corporation and Ankole Western University.
- The tax waiver was granted due to financial difficulties at the government-owned printer and leadership wrangles at the university.
- The approval brings the total tax waivers granted by Parliament over the past two days to Shs16.84 billion.
