Musasizi seeks tax waivers for three struggling entities

KAMPALA. Finance Minister Henry Musasizi has asked Parliament to consider tax waivers for three entities struggling to clear accumulated tax arrears, warning that their financial difficulties could threaten their continued operations.

The entities are Uganda Printing and Publishing Corporation (UPPC), City Harvest Electrical Installation Supply & Repairs Ltd and the Diocese of Northern Uganda.

Presenting the request to Parliament’s Committee on Finance, Planning and Economic Development, Mr Musasizi said the entities had accumulated substantial tax liabilities 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 taxes through instalment payments, but persistent financial and operational challenges had made it difficult for them to honour the agreements.

Mr Musasizi attributed the difficulties partly to delays in recovering money owed to the entities by their clients, including government institutions, which had constrained their cash flow and affected their ability to meet tax obligations.

He appealed to the committee to consider the proposed waivers, saying the relief would give the entities an opportunity to recover financially, sustain their operations and continue contributing to the economy.

The minister also urged Parliament to establish clear and transparent criteria for granting tax waivers to struggling businesses and institutions with the potential to recover and operate sustainably.

He said a structured framework would help the government balance tax compliance with the need to protect viable enterprises from collapse.

Mr Musasizi added that tax relief should be extended responsibly to entities whose recovery and continued operations could generate wider economic and institutional benefits