{"id":30376,"date":"2022-05-01T17:25:34","date_gmt":"2022-05-01T17:25:34","guid":{"rendered":"https:\/\/www.africa-press.net\/uganda\/all-news\/parliament-objects-to-bujagali-tax-incentive"},"modified":"2022-05-01T17:45:26","modified_gmt":"2022-05-01T17:45:26","slug":"parliament-objects-to-bujagali-tax-incentive","status":"publish","type":"post","link":"https:\/\/www.africa-press.net\/uganda\/all-news\/parliament-objects-to-bujagali-tax-incentive","title":{"rendered":"Parliament objects to Bujagali tax incentive"},"content":{"rendered":"

Africa-Press – Uganda. <\/strong><\/span>Parliament has thrown out the government\u2019s proposal to accord another five-year income tax holiday to the Bujagali Power project.<\/p>\n

The proposal made by junior Finance minister (General Duties) Henry Musasizi was strongly opposed by legislators on the Parliamentary Committee on Finance, reasoning that the previous 15 years of tax holiday to the project had not seen a significant reduction in power costs.<\/p>\n

The proposal was contained in the Income Tax Amendment Bill 2022 that Mr Musasizi made to said committee.<\/p>\n

He sought to amend Section 21 of the Income Tax Act to lengthen tax exemption for Bujagali Hydro Power Project from July 1, 2022 to June 30, 2027.<\/p>\n

\u201cThe purpose of this amendment is to reduce the average electricity tariff of Bujagali Hydro Power Project by 47 percent from the US cents 10.62 per kWh,\u201d he said, adding: \u201cThe five-year tax holiday, which was granted to Bujagali during the period July 1, 2017 to June 30, 2022, reduced the project power tariff from an average US cents 13.83 per kWh to US cents 10.62 per kWh.\u201d<\/p>\n

Mr Nathan Nandala Mafabi (Budadiri West) moved to find out how \u201cthis tax translate[s] in those units.\u201d<\/p>\n

He wondered how \u201cBujagali [has not] recouped the investment\u201d after Parliament in effect \u201cgave them 10 years [and] another five years.\u201d<\/p>\n

The same sentiments were shared by Mr Muhammad Nsereko (Kampala Central). He reasoned that attempts by the government to raise revenue to pump into an already strained budget will burden taxpayers.<\/p>\n

\u201cExemption means creating a gap somewhere that must be filled\u2026.You aren\u2019t telling us the exact figure that you will be exempt. You can\u2019t legislate in ambiguity,\u201d Mr Nsereko said, adding: \u201cI am not among those people who will sit here again and exempt Bujagali so that we increase the tax burden on our ordinary people as investors go home and enjoy their income tax.\u201d<\/p>\n

In 2017, Parliament okayed a request by then junior Finance minister (Planning and Development) David Bahati to give Bujagali a five-year exemption from paying income tax.<\/p>\n

Current shadow Finance minister Muwanga Kivumba (Butambala) was quick to remind Mr Musasizi that rules of engagement have since changed.<\/p>\n

\u201c[Parliament] took a decision that this year, until we do a comprehensive review on all these exemptions, we should be very reluctant to grant more because the revenues foregone in these exemptions are Shs7.7 trillion,\u201d he said, adding: \u201cIf you collect Shs7.7 trillion and you forego interesting debt rollover, you will save about Shs10 trillion.\u201d<\/p>\n

Mr Musasizi\u2014who confessed that the \u201cBujagali project hasn\u2019t yet recouped the money\u201d\u2014warned that a \u201cdecision not to grant [a tax exemption [could lead] to increase in power prices.\u201d<\/p>\n

This outcome, he added, will \u201cbe suicidal because we are synergising towards the cost of doing business, particularly power.\u201d<\/p>\n

Debt in Uganda\u2019s power sector must enhance, not undercut development<\/p>\n

Mr Moses Kaggwa, the director of economic affairs at the Finance ministry, was quick to assure the committee that an exemption will translate into reduced power costs.<\/p>\n

\u201cFor Bujagali, they had their own cost of putting up the plant, which is different from Isimba and Karuma dams,\u201d Mr Kaggwa said, adding: \u201cIt is that money that they are trying to recover. What we put in the agreement was that the taxes would be part of the capacity charge; it was wrong, but that is what is in agreement.\u201d<\/p>\n

For More News And Analysis About Uganda<\/a> Follow Africa-Press<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Africa-Press – Uganda. Parliament has thrown out the government\u2019s proposal to accord another five-year income tax holiday to the Bujagali Power project. The proposal made by junior Finance minister (General Duties) Henry Musasizi was strongly opposed by legislators on the Parliamentary Committee on Finance, reasoning that the previous 15 years of tax holiday to the […]<\/p>\n","protected":false},"author":84,"featured_media":30375,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,5,8],"tags":[233,240,234],"class_list":["post-30376","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-news","category-economy","category-homepage-english","tag-africa-press","tag-africa-press-uganda","tag-uganda"],"yoast_head":"\nParliament objects to Bujagali tax incentive - Uganda<\/title>\n<meta name=\"description\" content=\"Parliament has thrown out the government\u2019s proposal to accord another five-year income tax holiday to the Bujagali Power ...\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.africa-press.net\/uganda\/all-news\/parliament-objects-to-bujagali-tax-incentive\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Parliament objects to Bujagali tax incentive\" \/>\n<meta property=\"og:description\" content=\"Parliament has thrown out the government\u2019s proposal to accord another five-year income tax holiday to the Bujagali Power ...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.africa-press.net\/uganda\/all-news\/parliament-objects-to-bujagali-tax-incentive\" \/>\n<meta property=\"og:site_name\" content=\"Uganda\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/AfricaPressTunisiaa\" \/>\n<meta property=\"article:published_time\" content=\"2022-05-01T17:25:34+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-05-01T17:45:26+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/static.africa-press.net\/uganda\/sites\/34\/2022\/05\/postQueueImg_6.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"780\" \/>\n\t<meta property=\"og:image:height\" content=\"460\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"cfeditoren\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"cfeditoren\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.africa-press.net\/uganda\/all-news\/parliament-objects-to-bujagali-tax-incentive#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.africa-press.net\/uganda\/all-news\/parliament-objects-to-bujagali-tax-incentive\"},\"author\":{\"name\":\"cfeditoren\",\"@id\":\"https:\/\/www.africa-press.net\/uganda\/#\/schema\/person\/068c7ab4e9634ae78ec5d54ec46598bb\"},\"headline\":\"Parliament objects to Bujagali tax incentive\",\"datePublished\":\"2022-05-01T17:25:34+00:00\",\"dateModified\":\"2022-05-01T17:45:26+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.africa-press.net\/uganda\/all-news\/parliament-objects-to-bujagali-tax-incentive\"},\"wordCount\":565,\"commentCount\":0,\"image\":{\"@id\":\"https:\/\/www.africa-press.net\/uganda\/all-news\/parliament-objects-to-bujagali-tax-incentive#primaryimage\"},\"thumbnailUrl\":\"https:\/\/static.africa-press.net\/uganda\/sites\/34\/2022\/05\/postQueueImg_6.jpg\",\"keywords\":[\"Africa Press\",\"Africa Press-Uganda\",\"uganda\"],\"articleSection\":[\"all news\",\"economy\",\"homepage-english\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.africa-press.net\/uganda\/all-news\/parliament-objects-to-bujagali-tax-incentive#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.africa-press.net\/uganda\/all-news\/parliament-objects-to-bujagali-tax-incentive\",\"url\":\"https:\/\/www.africa-press.net\/uganda\/all-news\/parliament-objects-to-bujagali-tax-incentive\",\"name\":\"Parliament objects to Bujagali tax incentive - 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