Finance Minister Henry Musasizi Ariganyira has asked Parliament to consider tax waivers for three entities struggling to clear accumulated tax arrears, saying the relief could help them recover financially and sustain their operations.
The entities are Uganda Printing and Publishing Corporation (UPPC), City Harvest Electrical Installation Supply & Repairs Ltd and the Diocese of Northern Uganda.
Presenting the request before Parliament’s Committee on Finance, Planning and Economic Development on Tuesday, Minister Musasizi said the entities had accumulated substantial tax arrears and were facing financial and operational challenges that had made it difficult to meet their tax obligations.
He told the committee that the affected entities had entered into memoranda of understanding with the Uganda Revenue Authority (URA) to clear their outstanding tax liabilities through instalment payment arrangements.
However, persistent financial constraints had affected their ability to honour the agreed payment schedules, with some facing challenges that threatened the continuity of their operations.
Minister Musasizi attributed the difficulties partly to delays in recovering payments from clients, including government institutions, which had constrained their cash flow and undermined their ability to meet tax obligations.
He appealed to the committee to give due consideration to the proposed tax waivers, arguing that the relief would give the affected entities an opportunity to recover, continue operating and contribute to the economy.
The minister also called for the establishment of clear and transparent criteria to guide the granting of tax waivers to struggling businesses and institutions with the potential to recover and operate sustainably.
He said a structured framework would help balance tax compliance with the need to protect viable enterprises, preserve jobs and institutional services, and support economic growth.
Musasizi added that a well-defined approach would ensure tax relief is extended responsibly to deserving entities whose recovery could deliver wider economic and institutional benefits.