Deputy Speaker Thomas Tayebwa has proposed that the committee be established to investigate the Bujagali Hydropower Project to look into allegations of tax exemptions by some companies in Uganda.
This follows a minority report tabled by the Shadow Finance Minister indicating that the government could be losing up to 8 trillion shillings in tax exemptions pioneered by tax body Uganda Revenue Authority (URA).
Shadow Finance Minister, Butambala County MP Muwanga Kivumbi told the house that some businesses are foregoing paying taxes in the pretext of tax holidays.
“We have almost Shs8 trillion in tax exemptions; we have just highlighted a few; others are getting corporation tax holidays, which are taxes on profits…they come here, they get free electricity and land, and then they do not pay tax,” he said
The speaker deferred the debate to Tuesday next week after proposing that a select committee looks into the matter.
“We have a committee to look into the tax exemptions of Bujagali; we should not go into the budget cycle without the report; if you have done a good job, we shall give you the other entities to also look at expeditiously in two weeks,” said Tayebwa.
Kivumbi also wants quarterly tax exemption reports to be presented to the House under Section 77 of the Public Finance Management Act, 2015.
The report shows that some are exempted from paying taxes and these include; + Oil Palm Uganda Limited (Value Added Tax) 55.28 billion and Corporation tax of 189.7 billion, Roofings Rolling Mills Limited (Corporation tax) 15.71 billion, Uganda Post Limited (Value Added Tax) 5.2 billion and Pay as You Earn (PAYE) of 6.21 billion, Fine Spinners Uganda Limited (Stamp Duty) 239.5 million, the Commission of inquiry into the effectiveness of law policies and processes of land acquisition administration management and registration 2017 (PAYE) 13.65 billion and Withholding Tax 212.7 million.
Others are Kisubi (PAYE) 172.9 million, Finasi-ishu Construction Spv Limited (PAYE) 1.85 billion, and Withholding Tax 47.9 billion, International Specialized Hospital of Uganda Limited (PAYE) 1.78 billion and Withholding Tax 523.3 million.