Fresh from high profile World Bank meetings in Thailand, Musasizi now seeks tax waivers for UPPC, City Harvest and Northern Uganda Diocese

Fresh from high profile World Bank meetings in Thailand, Musasizi now seeks tax waivers for UPPC, City Harvest and Northern Uganda Diocese

Finance Minister Henry Musasizi has asked Parliament to consider tax waivers for three entities struggling with accumulated tax arrears and financial difficulties that threaten their continued operations.

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

Musasizi presented the request to Parliament’s Committee on Finance, Planning and Economic Development, arguing that the affected entities need financial relief to recover and meet their obligations.

He told the committee that the entities had accumulated substantial tax arrears over time and were finding it increasingly difficult to settle their liabilities to the Uganda Revenue Authority (URA).

According to the minister, the entities had entered into memoranda of understanding with URA to clear their outstanding taxes through instalment payment arrangements. However, persistent financial and operational challenges had undermined their ability to honour the agreements.

Musasizi attributed some of the difficulties to delays in recovering payments from clients, including government institutions, which had constrained cash flow and affected the entities’ ability to meet their tax obligations.

He urged the committee to consider the proposed waivers, saying tax relief could help safeguard the entities’ operations, support financial recovery and enable them to continue contributing to the economy.

The minister also called for clear and transparent criteria to guide the granting of tax waivers to struggling businesses and institutions with the potential to recover.

He said a structured framework would help government balance tax compliance with the need to protect viable enterprises, preserve jobs and sustain economic activity.

Musasizi emphasised that tax relief should be granted responsibly to deserving entities whose recovery could deliver wider economic and institutional benefits.

The committee’s consideration of the request comes amid the broader challenge of balancing government revenue collection with the survival of organisations facing financial distress.

Any decision to grant the proposed waivers will raise questions about the criteria used to determine eligibility, the potential revenue implications and safeguards to ensure that tax relief is extended fairly and transparently.