Yesterday, officials from the Ministry of Finance and the Uganda Revenue Authority (URA) struggled to convince Parliament’s Committee on Finance to endorse a government plan to extend tax waivers amounting to approximately Shs13 billion to eight entities.
Minister’s Plea for Tax Exemptions
State Minister for Finance-in-charge of General Duties, Mr Henry Musasizi, appeared before the committee to plead with Members of Parliament (MPs) to exempt several entities, including academic institutions and business outlets, from paying taxes. The entities seeking exemptions include:
- Makerere Business Institute (MBI): Shs239.3 million
- Nkumba University: Shs4.47 billion
- M/S J2E Investment Corporation Ltd: Shs2.71 billion
- Donati Kananura: Shs3.776 billion
- Nicontra Ltd: Shs1.863 billion
- Mr. Peter Lokwang: Shs770.29 million
- Busoga University: Shs1.566 billion
- Kisiizi Hospital Power Ltd: Shs155.392 million
MPs Question the Selection Criteria
However, the proposal met resistance from several legislators, including Mr Karim Masaba and Shadow Finance Minister Ibrahim Ssemujju Nganda, who questioned the criteria used by the government to determine which entities should receive tax exemptions.
Controversy Over Medical Exemptions
Mr Masaba was particularly sceptical of the justification provided for exempting Mr Kananura from taxes due to medical conditions such as diabetes, hypertension, and prostate enlargement.
He pointed out that many Ugandans suffer from similar conditions and questioned the fairness of such selective exemptions.
Property Ownership Raises Eyebrows
In addition, Mr. Masaba expressed doubts over unverified claims that Mr. Kananura owns several commercial properties located on William Street, Nabugabo, and Namirembe Road.
He questioned why someone with such assets should be granted tax waivers.
Broader Concerns About Tax Collection
Shadow Finance Minister Ibrahim Ssemujju Nganda voiced his displeasure with the government’s approach, highlighting the challenges faced by URA in collecting revenue.
He noted the discrepancy between the tax collection target of Shs31 trillion and the national budget of Shs72.136 trillion, criticizing the government for proposing to forgive taxes while struggling to fund its operations.
Government’s Defense of the Exemptions
In response to the concerns, Mr Musasizi defended the exemptions, stating that they had been thoroughly assessed and processed before being presented to the committee.
He explained that under the law if the URA commissioner believes that a taxpayer cannot effectively pay due to hardship, impossibility, or excessive cost of recovery, the case can be referred to the minister, who then submits it to Parliament for approval.
