Newplan Limited, a local oil and gas company will get some relief after Parliament backed a Shs18.8 billion tax waiver. The House approved the waiver on Wednesday, 02 September 2026 at a sitting chaired by Speaker Jacob Marksons Oboth citing the company’s strategic role in the now growing sector.
A report by the Committee on Finance, Planning and Economic Development recognised the company’s footprint in the petroleum industry, observing that New Plan had made significant contributions to the oil and gas sector which it said is of strategic importance to Uganda’s anticipated oil production.
The report presented by the chairperson, Hon. Max Ochai revealed that Newplan was awarded East African Crude Oil Pipeline (EACOP) contracts by Total Energies in 2018 and at the peak of operations, the company deployed more than 700 employees and consultants.
EACOP activities were however, suspended and Newplan lost four major contracts including two with Total Energies and another two with Trans-African Pipeline Consultancy Uganda Limited.
The committee established that Newplan obtained a Shs11.2 billion loan from DFCU Bank to execute EACOP and other associated oil and gas projects in the Albertine Region.
Sheema Municipality Member of Parliament, Hon. Dicksons Kateshumbwa said supporting Newplan will protect Uganda’s participation in an industry largely dominated by foreign contractors. “The oil and gas sector is one where Parliament pushed government to come up with local content rules to enable Ugandans to participate. Most contractors under the sector are foreigners,” said Kateshumbwa.
He said the company retained workers during disruptions to EACOP activities in anticipation of new contracts which did not materialise, worsening its financial position. This left the company with hefty tax arrears for PAYE, VAT and withholding tax. “As a committee we believed that government should in such a case enable the company to resuscitate and enable Ugandans to participate in oil and gas,” Kateshumbwa said.
The Minister of State for Industry, Hon. David Bahati described Newplan as one of the few companies that had managed to penetrate the highly competitive petroleum industry. “The easiest option is to give a waiver to this company to go and start afresh. It is a company of government interest; it is in the right place to help Ugandans,” he added.
Kumi Municipality MP, Hon. Silas Aogon argued that government needs to help struggling private companies recover. “The private sector is limping, and we do not give them support. You cannot skin a cow that is dead. It is only brilliant that this House considers the waiver,” Aogon said.
Kassanda North MP, Hon. Patrick Oshabe questioned the non-remittance of PAYE and withholding tax arguing that companies without recent audited accounts should not qualify for tax waivers.
“A company that is not audited cannot convince this Parliament that it deserves a tax waiver; now we are dealing with a company that last audited their books five years ago. It should not come before us to ask for a tax waiver,” said Oshabe.
Kigulu North County MP, Hon. Samuel Kungu Bamuteze warned against creating a precedent for indiscriminate tax waivers. “We are opening the floodgates to have many waivers coming to Parliament. Let us not go on record that this is the Parliament that only passes waivers without scrutinising them,” he said.
