Uganda’s Parliament approved a Uganda tax waiver worth about Shs14.97bn ($3.7mn) on Thursday 12 November for the state printer UPPC and Ankole Western University, over objections from opposition MPs.
The decision writes off Shs13.9bn owed by the Uganda Printing and Publishing Corporation and Shs1.02bn owed by the university, according to a statement from the Parliament of Uganda. It matters because most of the printer’s arrears trace back to unpaid bills from the government’s own ministries and agencies. The dollar figure uses the rate of about 4,050 shillings cited by the central bank governor this week.
Why did UPPC need a Uganda tax waiver?
Gerald Nangoli, who presented the finance committee’s report, said the corporation’s tax arrears built up because ministries, departments and agencies had delayed payments of Shs11.85bn. Those bodies make up more than 90 per cent of its clients, he said, and about half of the receivables have been outstanding for more than a year.
The committee recommended that the finance minister issue a treasury circular within 30 days directing every agency that owes an undisputed sum to pay it by the end of the third quarter of the 2026/27 financial year.
Henry Musasizi, a finance minister, told the House that the timetable was not realistic and committed to clearing the debts within three years. “UPPC is a wholly-owned government entity,” he said. “It must remain in operation.”
Who opposed the Uganda tax waiver?
A minority report presented by Gyaviira Lubowa of the opposition National Unity Platform argued that the waiver was unnecessary. Once agencies paid the Shs11.85bn, he said, the corporation could clear its principal tax of Shs7.93bn, and the penalty of Shs64.1mn and interest of Shs5.95bn would be waived automatically under the Tax Procedures Code Act.
Peter Okot of the Democratic Party made a similar point. “If the Ministry of Finance is going to support UPPC to recover money owed to it,” he said, “then there is no need to grant a tax waiver to them.”
Bruce Kabaasa, the MP for Rubanda County West, proposed that money the corporation collects from agencies should go directly to the government now that the Uganda tax waiver has been approved.
Remigio Achia of the ruling National Resistance Movement said the problem was wider. He told MPs that the National Water and Sewerage Corporation is owed Shs97bn by public bodies, and asked what powers the House should give the minister to collect such debts.
What relief did Ankole Western University receive?
The committee recommended waiving the university’s tax arrears, interest and penalties, saying the liability threatened its existence. James Kakooza, who presented that report, said the arrears arose from Pay As You Earn computed during the Covid-19 pandemic, when operations were disrupted, and not from deliberate evasion.
He said a dispute between factions in the West Ankole Diocese of the Church of Uganda had led to a breakdown in governance, falling enrolment and lower tuition income. The Uganda Revenue Authority had issued third-party notices and a warrant of distress against the university’s accounts and property, he added.
The committee said enforcement would have meant immediate closure, disrupting the studies of more than 1,000 students.
What is the background to the Uganda tax waiver?
The finance ministry laid the requests before Parliament in July, together with one for the winemaker K-Roma, and they were referred to the finance committee. Parliament separately approved waivers for K-Roma and Kilembe Mines on 11 November.
The statement did not record a vote count. Parliament has dealt with other state enterprise problems this month, including an order for a Dei Biopharma inquiry.
FAQ
How much is the Uganda tax waiver worth?
About Shs14.97bn in total: Shs13.9bn for the Uganda Printing and Publishing Corporation and Shs1.02bn for Ankole Western University, according to Parliament.
Why does UPPC owe tax?
The finance committee said government ministries and agencies owe the state printer Shs11.85bn in unpaid bills, which left it unable to meet its tax obligations and led to the Uganda tax waiver request.
Did all MPs back the Uganda tax waiver?
No. A minority report from an opposition MP argued the printer could pay its principal tax once agencies settled their debts, and that interest and penalties would then fall away under existing law.
When will government agencies pay UPPC?
The committee asked for payment by the third quarter of 2026/27. The finance minister said that was not realistic and committed to clearing the debts within three years.
