MPs demand tighter controls on tax waivers

What the report says

Members of Parliament in Uganda have called for tighter oversight, clearer criteria and stronger accountability in the granting of tax waivers and remissions. The debate took place in Parliament on a statement from Finance Minister Henry Musasizi about the procedures under Section 43 of the Tax Procedures Code Act, with Deputy Speaker Thomas Tayebwa presiding over the sitting, according to Watchdog Uganda.

The minister said tax remission is meant for exceptional cases where collecting a liability would no longer serve the public interest because of hardship, impossibility, undue difficulty or the high cost of recovery. He explained that applications are reviewed by the Uganda Revenue Authority, then the Ministry of Finance, before Parliament gives final approval. MPs, however, questioned whether those safeguards are enough to prevent abuse.

Several legislators raised concerns about taxpayers receiving relief despite appearing able to pay, including cases involving rental tax, PAYE and withholding tax. Others asked for clearer rules around waivers linked to presidential directives, often called “blue letters,” and pointed to audit and parliamentary reports that have flagged revenue losses from exemptions and waivers. The Leader of the Opposition, Joel Ssenyonyi, said the language around hardship remains too vague and urged post-waiver reviews to check whether promised economic benefits were delivered.

Musasizi said the complaints reinforced the need for checks at each stage of the process and argued that the multi-level review system is designed to expose loopholes before approvals are granted.