Parliament’s Finance Committee Takes Stand Against Unjust Tax Exemptions

The Finance Committee of Parliament has taken a bold stance by rejecting tax exemption requests from various companies, sparking a crucial debate on the rationale behind such exemptions and their impact on fairness and effective tax collection in Uganda.

State Minister for Finance, Henry Musasizi, presented a compelling case before the committee, chaired by Amos Kankunda, advocating for eight companies seeking a total of Shs 13.391 billion in tax exemptions.

This move set the stage for intense deliberations and passionate exchanges among the Members of Parliament, highlighting the significance of transparency and accountability in fiscal matters.

Particular scrutiny fell upon J2E Investments Corporation Limited, associated with Elderly MP Penina Busingye, as MPs vehemently opposed the company’s request for Shs2.7 billion in exemptions.

Allegations of substandard work on Ministry of Defense projects and failure to remit VAT to the Uganda Revenue Authority raised serious concerns about tax compliance and corporate responsibility, underscoring the need for stringent oversight and enforcement of tax regulations.

Upholding accountability and transparency in tax exemption requests

Amidst the heated discussions, NICONTRA Construction, linked to Nicholas Byengoma and Defense Ministry Permanent Secretary Rosette Byengoma, faced scrutiny for seeking VAT exemptions totaling Shs931 million.

The revelation of the company’s failure to remit collected VAT payments drew astonishment from MPs, emphasizing the critical importance of upholding transparent and equitable tax practices to maintain the integrity of the tax system.

In a resolute display of commitment to fairness and integrity in taxation policies, the committee decisively rejected exemption requests from entities such as Kisiizi Hospital Power Limited, Nkumba University, Busoga University, Makerere Business Institute, and individual dealers like Peter Lokwang.

This unwavering stance underscores the committee’s dedication to fostering a level playing field for all businesses and upholding the principles of accountability and fairness in the realm of taxation.

MPs, led by vocal advocates like Bumaali Mpindi, reiterated the necessity for consistent and uniform tax policies, condemning any attempts to use influence to secure special tax privileges.

The committee’s decision marks a pivotal moment in the ongoing discourse surrounding tax exemptions in Uganda, particularly against the backdrop of economic challenges exacerbated by the COVID-19 pandemic.

This development reinforces the imperative of transparency, accountability, and ethical conduct in tax matters to ensure the country’s financial stability and equitable distribution of fiscal burdens.

Check also;

• Bujagali Secures Another Year Of Tax Waiver Despite Auditor-General’s Warning
• Divided Opinions Emerge As Parliament Prepares To Vote On New Taxes

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