MPs have finally agreed to allow the Executive to write off tax arrears of various private companies amounting to Shs499bn.
The Ministry of Finance tabled 2019/2020 tax policy measures and among the policies tabled before the Committee of Finance was the Bill seeking to amend the Tax Procedures Code Act, 20l4, to write off all unpaid taxes by government as at 30th June 2019.
While introducing the Bill before the Committee, David Bahati (in featured photo), State Minister for Planning informed Parliament that the arrears arose out of Government’s commitment to pay taxes (customs duties and domestic taxes) on behalf of entities deemed to be of strategic importance to the country and on behalf of NGOs which had contractual obligations with Government.
The Minister also said that in most donor projects, the obligation to pay taxes rests with the Government and some of the tax arrears arose out of government’s commitment to pay tax component for a contract under counterpart funding arrangements and in some cases, government has not met this obligation and as such, arrears have accrued.
Some of the companies whose taxes are to be written off include; Roko Construction Limited-Shs5.84bn, Cementer Limited- Shs4.62bn, Dott Services Limited Shs8.32bn, Arab Contractors Limited Shs14.33bn, Steel and Tubes Industries Ltd Shs20.48bn, Southern Range Nyanza Ltd- Shs86.8bn, Aya Investment Uganda Shs3.94bn and Cipla Quality Chemical Industries Limited-Shs57.5bn among others.
Earlier on, some MPs had called to have Cipla Steel and Tube struck off the list but when the question was put across for the August House to vote on the matter, MPs voted unanimously to have the taxes written off.
