Parliament Approves Shs18.8 Billion Tax Relief for Newplan Limited

Parliament has endorsed a significant tax relief package amounting to Shs18.8 billion for Newplan Limited, a local company operating within Uganda’s oil and gas sector. The decision, made on Wednesday, September 2, 2026, during a session chaired by Speaker Jacob Marksons Oboth, acknowledges Newplan’s crucial role in the developing industry.

A report by the Committee on Finance, Planning and Economic Development highlighted Newplan’s substantial contributions to the petroleum industry, emphasizing its strategic value to Uganda’s anticipated oil production.

The committee, led by Hon. Max Ochai, noted that Newplan secured contracts for the East African Crude Oil Pipeline (EACOP) from Total Energies in 2018. At its peak, the company employed over 700 individuals. However, the suspension of EACOP activities led Newplan to lose four major contracts, significantly impacting its financial standing.

To facilitate its operations, Newplan had secured a Shs11.2 billion loan from DFCU Bank. The tax arrears accumulated due to the company’s financial difficulties, including PAYE, VAT, and withholding tax.

Lawmakers like Hon. Dicksons Kateshumbwa advocated for the waiver, arguing it is vital to safeguard Ugandan involvement in an industry predominantly managed by foreign entities and to support local content initiatives.

Minister of State for Industry, Hon. David Bahati, supported the waiver, describing Newplan as a key player that has successfully navigated the competitive petroleum market and is vital for government interests in boosting Ugandan employment.

While some MPs like Hon. Silas Aogon stressed the need to support struggling private businesses, others, including Hon. Patrick Oshabe and Hon. Samuel Kungu Bamuteze, raised concerns about setting a precedent for indiscriminate tax waivers and the lack of recent audited accounts for the company.

Source: https://www.parliament.go.ug/index.php/news/4599/newplan-gets-shs18-billion-tax-relief