Finance Minister Musasizi defends criteria for tax remission

What the report says

Kampala, Uganda — Finance Minister Henry Musasizi has defended the government’s criteria for tax remission, telling Parliament that the measure is meant for exceptional cases and is not a substitute for ordinary tax payment. The clarification, reported by The Independent Uganda from URN material, sets out how taxpayers can seek relief from liabilities under Section 43 of the Tax Procedures Code Act, Cap. 343.

According to the ministry’s explanation, remission may be considered only when the Uganda Revenue Authority cannot effectively recover a debt because of genuine financial hardship, impossibility, undue difficulty or recovery costs that would outweigh the likely revenue. Before a case can move forward, URA must first try lawful collection steps such as instalment plans, asset enforcement, offsetting credits and deferred payment, and then assess whether the legal threshold for remission has been met.

The process begins with an application to the URA Commissioner General, supported by evidence on the tax debt, the grounds for relief and the amount requested. If the Commissioner General recommends it, the matter goes to the finance minister and then to Parliament, which has the final say. If approved, the remission is gazetted and implemented by URA.

Musasizi also said not every business setback qualifies as hardship, noting that temporary cash-flow problems, lower profits, business expansion plans or disagreement with an assessment do not automatically justify relief. The government says the framework is intended to balance fairness with domestic revenue mobilisation as Uganda seeks to improve compliance and reduce reliance on borrowing.