Parliament has also approved a tax waiver equivalent to Shs14.9 billion in owed by the Uganda Printing and Publishing Corporation (UPPC) and Ankole Western University.
The approval followed the presentation of two reports by the Committee on Finance, Planning and Economic Development on Thursday, 12 November 2026. The committee recommended the waiver of tax obligations worth Shs13.9 billion owed by UPPC and tax arrears of Shs1.02 billion owed by Ankole Western University.
Hon. Gerald Nangoli (NRM, Elgon North County) who presented the Committee report on UPPC said that its tax arrears accrued from delayed payment by Ministries, Departments and Agencies (MDAs) to the corporation to a tune of Shs11.85 billion.
He added that the said MDAs comprise more than 90 per cent of the corporation’s client base, with about half of receivables outstanding for more than a year.
“The committee recommends that the Minister responsible for Finance should, within 30 days of a resolution of the House, issue a treasury circular directing every MDA that owes an undisputed sum to the corporation to pay that sum, in whole or in part, by the end of quarter three of financial year 2026/27,” Nangoli said.
A minority report presented by Hon. Gyaviira Lubowa (NUP, Nyendo-Mukungwe Division) however, challenged the recommendation to waive UPPC’s tax obligations, noting that potential clearance of payables owed by MDAs to UPPC, would give it the required funding to clear its principal tax.
“Once the MDAs pay off the Shs11.85 billion, UPPC will have sufficient funds to clear the total principal tax of Shs7.93 billion. Subsequently, the penalty tax of Shs64.1 million and interest of Shs5.95 billion will automatically be waived as per Section 47(D) of the Tax Procedures Code Act,” Gyaviira said.
Hon. Peter Okot (DP, Tochi County) also challenged the need for the waiver. “If the Ministry of Finance is going to support UPPC to recover money owed to it by the different MDAs by the third quarter, then there is no need to grant a tax waiver to them,” Okot said.
Rubanda County West MP, Hon. Bruce Kabaasa proposed that the funds collected by UPPC from accumulated receivables of MDAs should be paid directly to government following Parliament’s approval of the tax waiver.
Hon. Remigio Achia (NRM, Pian County) alluded to other government agencies that have provided services, but have not been paid in full by other MDAs that consume such services.
“National Water and Sewerage Corporation is suffering because Shs97 billion is owed by different entities that have refused to pay for water. Now, UPPC is facing the same challenge. What powers does this House need to give to the Minister [Finance] to collect this money?” Achia asked.
The Minister of Finance, Hon. Henry Musasizi said that it was not realistic to fulfil the payments by the third quarter, which starts in January 2026 and r committed to clear them within three years.
“UPPC is a wholly-owned government entity. The question we should ask ourselves is, do we have an obligation to keep this company in operation, or do we want to close it? It must remain in operation. We have a duty as patriotic Ugandans to support our company to remain operating,” Musasizi said.
The committee also recommended a waiver of tax arrears, interest and penalties for Ankole Western University, noting that the outstanding tax liability severely impairs the university’s operational viability and threatens its existence as a higher education institution.
Hon. James Kakooza (NRM, Older Persons Representative, Central) said the tax arrears accrued due to systematic computation of Pay As You Earn during a period of severe operational disruption and voluntary staff arrangement during the Covid-19 pandemic, rather than deliberate tax evasion.
“The university experienced an intense socio-political conflict between Sheema and Igara factions within the West Ankole Church of Uganda Diocese. This resulted into a breakdown of institutional governance, and consequently, student enrolment plummeted and tuition revenues were eroded,” the Kakooza said.
He added that Uganda Revenue Authority (URA) undertook administrative recovery efforts including third-party notices and a warrant of distress, to attach available funds on the university’s bank accounts and any movable property.
“The committee observed that the enforcement actions by URA through payment reminders, third party agency notices and warrants of distress would result into immediate closure of the university, disrupting studies of over 1,000 students and rendering staff unemployed,” Kakooza added-Ug. Parliament. Give us feedback on this story through our email: kamwokyatimes@gmail.com
