Shs30 Billion Tax Waiver for 3 Companies: What does Uganda get in return?

What the report says

Parliament’s Finance Committee in Uganda is reviewing tax and arrears relief requests worth about Shs30.4 billion for three companies, according to The Independent Uganda. The cases involve two private firms, Fresh Cuts Uganda Limited and New Plan Uganda, and the state-owned Kilembe Mines Limited. The requests were brought by the Ministry of Finance, Planning and Economic Development, while Kilembe’s write-off was raised by the Ministry of Energy and Mineral Development.

The article says the private-company requests total Shs27.78 billion, with Fresh Cuts seeking Shs8.92 billion and New Plan Shs18.86 billion. Kilembe Mines is seeking a Shs2.6 billion write-off for unpaid annual mineral rents as the company winds down. Parliament must approve the relief before it can take effect. The report notes that the committee is weighing whether the government would gain any meaningful return in jobs, business recovery, or future tax revenue if the waivers are granted.

The Independent Uganda says the debate comes amid wider concerns about tax exemptions and waivers in Uganda, including past audit findings on revenue leakages and weak accountability. MPs cited by the paper questioned whether distressed companies can realistically recover after relief and whether directors or owners should be held accountable in some cases. For Kilembe Mines, lawmakers also raised concerns about urgency and the company’s role in a new mineral agreement.

If approved, the measure would remove the liabilities from the books and potentially allow the firms to stabilize, but the Finance Committee has not yet made its final recommendation.