Britania wins legal battle over UGX1.2 billion fruit pulp tax dispute

KAMPALA, Uganda — The Commercial Court has overturned a 1.2 billion shilling tax assessment against Britania Allied Industries Limited, ruling that the Uganda Revenue Authority cannot retroactively change tax demands once a taxpayer has acted in good faith.

In a judgment delivered Dec. 30, 2025, Justice Susan Odongo nullified the assessment on imported mango and guava fruit pulp. The judge found that the revenue authority erred by issuing retrospective demands for the period between 2017 and June 15, 2021.

The legal dispute centered on two demand notices issued by the tax body in 2021 for short-levied taxes amounting to 221 million shillings and 1 billion shillings. Justice Odongo declared these notices unlawful and set them aside.

The judge also criticized a previous decision by the Tax Appeals Tribunal. She ruled the tribunal failed to apply the legal principle that a public authority cannot retroactively depart from an established position that a taxpayer has relied upon.

While Britania is not liable for the 1.2 billion shilling assessment, the court upheld the classification of imported mango and guava fruit pulp under a harmonized system that attracts a 10 percent duty rate.

Justice Odongo noted the importance of obtaining expert opinions from the World Customs Organization regarding whether fruit pulp qualifies as juice or a raw material. Under international Codex Alimentarius Standards, fruit pulp is defined as an unfermented but fermentable product obtained from the edible parts of fruit without removing the juice.

The Uganda Revenue Authority had previously argued that mango pulp was not covered under specific gazetted sub-headings, which primarily address orange and apple juices. Britania, a major manufacturer of biscuits, confectionery and sauces, uses the imported pulp as a raw material in its production processes.