MPs query companies URA listed for tax exemption

Business
MPs query companies URA listed for tax exemption
Makerere Business Institute

The Finance Committee of Parliament has dismissed officials from the Ministry of Finance and Uganda Revenue Authority following concerns over the selection process for tax exemptions granted to seven companies, including three institutions of higher learning.

The legislators had noted glaring discrepancies in the process, including an increase in the number of companies granted exemptions compared to what was initially presented to Parliament.

The officials from Ministry of Finance Planning and Economic Development led by the Minister for General Duties, Henry Musasizi, and Uganda revenue Authority led by Sarah Chelangat, the commissioner domestic taxes, appeared before the finance committee  chaired by Amos Kankunda to present a list of companies eligible for tax exemptions.

During the proceedings, it was revealed that additional companies were included in the list, leading to dissatisfaction among committee members.

However,  before even the minister's presentation, committee members smelt something fishy after discovering that the number of companies had increased from the initial three the finance minister had presented on floor of parliament for tax waivers.

Under  Section 40(2) of the Tax Procedures Code, Minister Musasizi had presented Makerere Business Institute tax liability of Shs239 million, Nkumba University PAYE of Shs4.5 billion and J2E Investment Corporation Ltd Shs2.7bn value added tax.

During the proceedings, committee members discovered additional four companies on the list.

Donati Kananura with VAT  and rental income tax amounting to Shs2 billion and Shs1.6 billion, respectively; M/S value added tax of Shs931 million, Peter Lokwang for withholding tax of Shs385 million, and Busoga University PAYE of Shs783 million.

Muwanga Kivumbi, a committee member, disclosed that even ministry of finance fronting for the waivers needs prayers.

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