Africa-Press – Uganda. The Tax Justice Alliance Uganda has called on Parliament’s Finance Committee to reject the government’s proposal to extend the tax exemption on the Bujagali hydro power project until 2032.
The Alliance warns that such an exemption would result in substantial revenue losses for the country.
“We believe that extending the tax exemption on Bujagali would be a significant loss of revenue for the country,” a representative from the Tax Justice Alliance Uganda stated during their appearance before the Finance Committee.
The Alliance is urging Parliament to reject the proposal and instead recommends renegotiating the terms of the public-private partnership (PPP), in line with the suggestions of the Adhoc Committee on Bujagali.
The Ad hoc Committee had previously proposed that the terms of the PPP be renegotiated to ensure a more favorable deal for Uganda, something the Tax Justice Alliance strongly supports.
“This is an opportunity for the government to secure a more equitable agreement that can benefit the country in the long term,” said the representative.
The Alliance’s call echoes growing concerns about the financial implications of the current arrangement and the need for a more sustainable deal.
In addition to the Bujagali issue, tax experts have raised alarms about the potential negative impacts of proposed fuel tax hikes.
“Increasing fuel taxes would have far-reaching consequences, affecting not only the economy but also the most vulnerable members of society,” said one expert, stressing the need for balanced tax policies that do not exacerbate inequality.
On the other hand, the Uganda Tobacco-Taxation Coalition has submitted a proposal to raise taxes on tobacco products as a means of prioritizing public health.
The coalition suggests increasing the tax on cigarettes, with a proposed hike from 80,000 shillings to 160,000 shillings per 1,000 cigarettes for hinge lid variants, and from Shs55,000 to Shs110,000 for soft caps.
Meanwhile, Qura Uganda Limited, a company dealing in rejected hides, has requested Parliament to maintain the current tax framework for their industry.
Their submission was part of the ongoing discussions around the hides and skin tax amendment bill of 2025.
The Finance Committee’s decision on these matters will have significant implications for Uganda’s fiscal policy, public services, and the overall economy.
As the committee continues to deliberate, the submissions from various stakeholders will be carefully considered in shaping the future of the country’s tax landscape.
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