Parliament has rejected a request by the Government to exempt businessman Donati Kananura from paying taxes amounting to Shs2.7 billion , citing unconvincing justifications for the exemption.
The Finance Committee, led by Chairperson Amos Kankunda, ruled that the reasons presented—Kananura’s medical conditions, including diabetes, prostate enlargement, and loss of sight—did not constitute a valid basis for tax relief.
The Ministry of Finance had sought to exempt Kananura from Value Added Tax (VAT) obligations amounting to Shs1,285,685,354 and rental income tax worth Shs1,141,083,460.
However, after reviewing the request, the Finance Committee found no legal or financial justification to grant the waiver. Consequently, the government withdrew the proposal.
“While processing this request, the Committee was not convinced on the basis for the application of a tax waiver by the taxpayer. Accordingly, the Minister conceded and withdrew the tax waiver request by Mr. Donati Kananura. In compliance with Rule 199(4), the Committee guided the Minister to formally withdraw the request on the floor of the House,” Kankunda stated.
The request had been initially presented to Parliament in August 2024 by Henry Musasizi, Minister of State for Finance.
Musasizi argued that Kananura’s severe health conditions had significantly affected his financial standing, leaving him with mounting medical expenses and outstanding loan repayments tied to his real estate business.
He contended that the businessman’s deteriorating health had rendered him incapable of fulfilling his tax obligations.
Despite the government’s appeal, MPs stood firm, maintaining that personal health challenges should not exempt individuals from their tax responsibilities.
The rejection of the waiver underscores Parliament’s commitment to enforcing tax compliance and ensuring that all businesses, regardless of ownership or financial constraints, meet their fiscal obligations.
The decision has sparked mixed reactions, with some sympathizing with Kananura’s situation while others view the move as a necessary step in maintaining tax discipline.
As Uganda grapples with revenue mobilization challenges, the ruling serves as a precedent on the limitations of health-related justifications in tax exemption requests.
Kananura now faces the task of settling his tax arrears or seeking alternative legal remedies to address his financial predicament.