Uganda’s parliament has approved over USh 9.5 billion (~KSh 334.77 million) in tax waivers for several local investors facing economic headwinds.
- •Among the approved exemptions are USh 2.7 billion for J2E Investment Corporation, a construction company, due to unpaid VAT linked to government delays in project payments.
- •Nkumba University, which is facing declining student enrolment and reduced tuition revenue, received a USh4.4 billion waiver while Makerere Business Institute received a USh 239million waiver.
- •The decision stirred up controversy over the process, with lawmakers questioning the access to information for small and rural businesses, and the fact that such exemptions cost 12.5% of total revenue in the last financial year.
The waivers include USh 783mn to Busoga University after the government took over the institution, USh 77 million to support Kisiizi Hospital Power’s efforts in providing affordable electricity t rural communities, and USh 931mn in relief to Road construction firm M/S Nicontra Ltd.
Lawmakers had previously questioned the Uganda Revenue Authority’s criteria in granting tax waivers. The original list presented before the legislature’s finance committee listed eight taxpayers who cited the economic impact of the pandemic among other factors as reasons.
At the time, the list included a real estate dealer, Donati Kananura, and a miner, Peter Lokwang, who had applied for USh 3.776bn and USh 385.1 million in tax waivers respectively.
