Parliament has approved a tax waiver worth Shs14.9 billion for the Uganda Printing and Publishing Corporation (UPPC) and Ankole Western University to ease their outstanding tax liabilities and support their continued operations.
The approval followed the presentation of two reports by the Committee on Finance, Planning and Economic Development during a plenary sitting on Thursday, November 12, 2026. The committee recommended waiving tax obligations worth Shs13.9 billion for UPPC and Shs1.02 billion in tax arrears owed by Ankole Western University.
Hon. Gerald Nangoli (NRM, Elgon North County), who presented the committee report on UPPC, said the corporation’s tax arrears had largely accrued due to delayed payments by Ministries, Departments and Agencies (MDAs), which owe it Shs11.85 billion.
He said the MDAs account for more than 90 per cent of UPPC’s client base, with about half of the outstanding receivables having remained unpaid for more than a year.
“The committee recommends that the Minister responsible for Finance should, within 30 days of a resolution of the House, issue a treasury circular directing every MDA that owes an undisputed sum to the corporation to pay that sum, in whole or in part, by the end of quarter three of financial year 2026/27,” Nangoli said.
However, a minority report presented by Hon. Gyaviira Lubowa (NUP, Nyendo-Mukungwe Division) challenged the recommendation to waive UPPC’s tax obligations, arguing that recovering the money owed by government agencies would enable the corporation to settle its principal tax liability.
“Once the MDAs pay off the Shs11.85 billion, UPPC will have sufficient funds to clear the total principal tax of Shs7.93 billion. Subsequently, the penalty tax of Shs64.1 million and interest of Shs5.95 billion will automatically be waived as per Section 47(D) of the Tax Procedures Code Act,” Gyaviira said.
Hon. Peter Okot (DP, Tochi County) also questioned the need for the waiver, arguing that government should first facilitate the recovery of the outstanding payments.
“If the Ministry of Finance is going to support UPPC to recover money owed to it by the different MDAs by the third quarter, then there is no need to grant a tax waiver to them,” Okot said.
Rubanda County West MP, Hon. Bruce Kabaasa, proposed that money recovered by UPPC from the accumulated receivables owed by MDAs should instead be paid directly to government following Parliament’s approval of the tax waiver.
Hon. Remigio Achia (NRM, Pian County) cited similar challenges facing other government agencies that provide services to MDAs but are not paid on time.
“National Water and Sewerage Corporation is suffering because Shs97 billion is owed by different entities that have refused to pay for water. Now, UPPC is facing the same challenge. What powers does this House need to give to the Minister [Finance] to collect this money?” Achia asked.
The Minister of Finance, Hon. Henry Musasizi, however, said it was unrealistic to expect the outstanding payments to be cleared by the third quarter of the financial year, which begins in January 2027. He committed to ensuring the debts are settled within three years.
“UPPC is a wholly-owned government entity. The question we should ask ourselves is, do we have an obligation to keep this company in operation, or do we want to close it? It must remain in operation. We have a duty as patriotic Ugandans to support our company to remain operating,” Musasizi said.
On Ankole Western University, the committee also recommended a waiver of outstanding tax arrears, interest and penalties, arguing that the liability had severely undermined the institution’s financial viability and threatened its continued existence as a higher education institution.
Hon. James Kakooza (NRM, Older Persons Representative, Central) said the tax arrears arose from the systematic computation of Pay As You Earn (PAYE) during a period of severe operational disruption and voluntary staff arrangements introduced during the Covid-19 pandemic, rather than deliberate tax evasion.
“The university experienced an intense socio-political conflict between Sheema and Igara factions within the West Ankole Church of Uganda Diocese. This resulted in a breakdown of institutional governance, and consequently, student enrolment plummeted and tuition revenues were eroded,” Kakooza said.
He added that the Uganda Revenue Authority (URA) had undertaken administrative recovery measures, including issuing third-party notices and a warrant of distress to attach available funds in the university’s bank accounts and any movable property.
“The committee observed that the enforcement actions by URA through payment reminders, third-party agency notices and warrants of distress would result in the immediate closure of the university, disrupting studies of over 1,000 students and rendering staff unemployed,” Kakooza added.
