PARLIAMENT, Uganda – Parliament has approved financial relief worth approximately Shs19.4 billion for four Ugandan entities facing financial and operational difficulties, reigniting debate over the circumstances under which government can forgive outstanding tax obligations and other public revenue.
The beneficiaries are Uganda Printing and Publishing Corporation (UPPC), Ankole Western University, Kilembe Mines Limited and K-Roma Limited. The approvals followed consideration of their financial circumstances, with lawmakers examining whether continued enforcement of outstanding obligations would worsen their difficulties or threaten their operations.
Under Uganda’s tax laws, an entity experiencing serious financial hardship may seek a waiver of outstanding taxes through an established legal process. However, financial difficulty alone does not automatically qualify a taxpayer for relief. Under Section 43(2) of the Tax Procedures Code Act, the Uganda Revenue Authority may refer a case to the finance minister, who must be satisfied that recovery is impractical because of hardship before seeking Parliament’s approval to remit the tax. The final power to approve such relief rests with Parliament.
UPPC received the largest share of the approved relief, amounting to approximately Shs13.9 billion. The corporation’s financial challenges were attributed largely to delayed payments by government ministries, departments and agencies, which owe it about Shs11.85 billion. These institutions account for more than 90% of UPPC’s customers, leaving the corporation struggling to meet its own financial obligations despite providing services to government.
The waiver, however, attracted criticism from lawmakers who argued that government should first recover the money owed to UPPC by public institutions rather than forgive its tax liabilities. Nyendo-Mukungwe Division MP Gyaviira Lubowa questioned the justification for the relief, arguing that settling the outstanding government bills would enable the corporation to meet a substantial portion of its obligations. Finance Minister Henry Musasizi defended the decision, citing the need to protect the operations of the government corporation.
Ankole Western University was granted approximately Shs1.02 billion in relief following financial difficulties linked to governance disputes, declining student enrollment and disruptions caused by the COVID-19 pandemic. Parliament heard that the institution’s reduced income had affected its ability to meet tax obligations, while continued enforcement measures threatened its operations and the education of more than 1,000 students.
K-Roma Limited, the manufacturer of Bella Wine, received approximately Shs1.86 billion in tax relief after reporting financial difficulties associated with declining sales, the effects of the pandemic and competition from informal producers. The decision nevertheless raised questions about the company’s financial management, particularly after the Finance Committee established that sales had declined significantly while unsold stock continued to accumulate.
Kilembe Mines Limited was granted relief of approximately Shs2.6 billion in unpaid annual mineral rent accumulated between 2018 and 2025. Unlike the other cases, the amount relates to non-tax revenue rather than ordinary tax liabilities. The predominantly government-owned company has faced prolonged operational challenges since copper production stopped in 1982, with the waiver intended to facilitate its winding up and the ongoing redevelopment process.
The approvals have drawn concern from opposition lawmakers, particularly over the fairness of granting relief to selected taxpayers. Leader of the Opposition Joel Ssenyonyi questioned the decision to waive K-Roma’s liabilities, noting that the amount forgiven exceeded the Shs1.07 billion the company had paid in taxes over 16 years. He also challenged the handling of Kilembe Mines’ arrears, arguing that Parliament should have approved the write-off before government took steps toward abandoning the claim.
The government defended the decisions, arguing that continued recovery efforts against financially distressed entities could prove costly and counterproductive. Security Minister, former Attorney General, Kiryowa Kiwanuka, maintained that URA had exhausted available recovery measures in the cases under consideration, making further enforcement unlikely to produce meaningful results.
The debate also brought attention to the wider business community, where some taxpayers facing financial difficulties may be unaware that the law provides a procedure for seeking relief. Speaker Jacob Marksons Oboth consequently urged the Ministry of Finance to educate businesses about the eligibility requirements and application process, saying the opportunity should be understood by those who genuinely need assistance.
Although the approvals provide immediate relief to the four beneficiaries, they also place renewed attention on how government assesses financial hardship, protects public revenue and ensures fairness among taxpayers. For struggling businesses, the decisions demonstrate that tax liabilities can be considered for remission under the law, but only after the required scrutiny and parliamentary approval. The challenge now is ensuring that the process remains transparent and accessible rather than appearing to benefit only a select group of institutions.
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