finance 13 August 2026 Parliament of Uganda
Finance Ministry Seeks Shs27.8 Billion Tax Waivers for Two Companies
The Ministry of Finance is requesting parliamentary approval for tax waivers totaling Shs27.78 billion for Fresh Cuts Uganda and New Plan Uganda. Both companies cite severe financial difficulties, including the loss of major contracts and significant debt, as reasons for their inability to meet tax obligations. Source: https://www.parliament.go.ug/news/4553/finance-seeks-shs278-billion-tax-waivers-two-firms
The Ministry of Finance, Planning and Economic Development has put forward a request to Parliament for significant tax waivers for two private companies, Fresh Cuts Uganda and New Plan Uganda, amounting to Shs27.78 billion.
Appearing before the Committee on Finance, State Minister for Planning, Hon. Amos Lugoloobi, explained that Fresh Cuts Uganda is seeking a waiver of Shs8.92 billion on its outstanding tax liabilities from 2025. The company has reportedly faced substantial financial hardship, leading to increasing arrears, particularly in Value Added Tax (VAT). Despite efforts by the Uganda Revenue Authority (URA) to recover the dues through demand notices and third-party agency interventions, no tax has been collected due to the company’s distressed financial position. Lugoloobi noted Fresh Cuts Uganda’s negative net worth of Shs22 billion in 2022 and substantial loans from DFCU bank and IBM.
New Plan Uganda is requesting a larger waiver of Shs18.86 billion. The Minister stated that the company’s cash flow has been severely impacted by the termination of key contracts, including work with Total Energies EP Uganda and Trans-African Pipeline Consultancy Uganda Limited. This has hindered its ability to fulfill tax obligations. New Plan Uganda also owes Shs11.2 billion to DFCU bank, which has led to the sale of some of the company’s assets.
Legislators on the committee raised concerns about the justification and potential benefits of granting such waivers. Questions were posed regarding the companies’ long-term viability, the government’s revenue collection prospects, and the recurring nature of such requests from businesses facing financial distress. Some members suggested that URA should conduct more thorough investigations into these companies to prevent potential misuse of parliamentary processes.
Minister Lugoloobi assured the committee that the Uganda Development Corporation (UDC) is prepared to offer financial support to the companies once these tax issues are resolved. The Committee is expected to deliberate further and present a report to the House.
Source: Parliament of Uganda