Uganda’s Uganda’s Parliament has approved a tax waiver equivalent to Shs14.9 billion (Uganda shillings) owed by the Uganda Printing and Publishing Corporation (UPPC), a wholly-owned government entity, and Ankole Western University. Lawmakers debated whether the waiver should be granted, or whether government agencies should first pay what they owe the printer.
Committee recommendations#
The approval followed the presentation of two reports by the Committee on Finance, Planning and Economic Development on Thursday, 12 November 2026. The committee recommended waiving the following:
- Tax obligations worth Shs13.9 billion owed by UPPC
- Tax arrears of Shs1.02 billion owed by Ankole Western University
Government arrears at the centre of the UPPC case#
Hon. Gerald Nangoli, who represents Elgon North County and presented the committee report on UPPC, said the corporation’s tax arrears arose from delayed payments by Ministries, Departments and Agencies (MDAs), totalling Shs11.85 billion.
He added that MDAs make up more than 90 per cent of the corporation’s client base, and that about half of its receivables have been outstanding for more than a year.
“The committee recommends that the Minister responsible for Finance should, within 30 days of a resolution of the House, issue a treasury circular directing every MDA that owes an undisputed sum to the corporation to pay that sum, in whole or in part, by the end of quarter three of financial year 2026/27,” Nangoli said.
Objections and the finance minister’s response#
A minority report presented by Hon. Gyaviira Lubowa of Nyendo-Mukungwe Division challenged the recommendation to waive UPPC’s tax obligations. It argued that clearing the payables owed to UPPC by MDAs would give the corporation the funds needed to clear its principal tax.
“Once the MDAs pay off the Shs11.85 billion, UPPC will have sufficient funds to clear the total principal tax of Shs7.93 billion. Subsequently, the penalty tax of Shs64.1 million and interest of Shs5.95 billion will automatically be waived as per Section 47(D) of the Tax Procedures Code Act,” Gyaviira said.
Hon. Peter Okot of Tochi County also challenged the need for the waiver. “If the Ministry of Finance is going to support UPPC to recover money owed to it by the different MDAs by the third quarter, then there is no need to grant a tax waiver to them,” Okot said.
Rubanda County West MP Hon. Bruce Kabaasa proposed that funds collected by UPPC from accumulated MDA receivables be paid directly to government following Parliament’s approval of the tax waiver.
Hon. Remigio Achia of Pian County referred to other government agencies that have provided services but have not been paid in full by the MDAs that use them.
“National Water and Sewerage Corporation is suffering because Shs97 billion is owed by different entities that have refused to pay for water. Now, UPPC is facing the same challenge. What powers does this House need to give to the Minister [Finance] to collect this money?” Achia asked.
Minister of Finance Hon. Henry Musasizi said it was not realistic to complete the payments by the third quarter, which starts in January 2026, and that a commitment had been made to clear them within three years.
“UPPC is a wholly-owned government entity. The question we should ask ourselves is, do we have an obligation to keep this company in operation, or do we want to close it? It must remain in operation. We have a duty as patriotic Ugandans to support our company to remain operating,” Musasizi said.
Ankole Western University#
The committee also recommended waiving tax arrears, interest and penalties for Ankole Western University. It noted that the outstanding tax liability severely impairs the university’s operational viability and threatens its existence as a higher education institution.
Hon. James Kakooza, Older Persons Representative for Central, said the arrears built up from the systematic computation of Pay As You Earn during a period of severe operational disruption and voluntary staff arrangements during the Covid-19 pandemic, rather than deliberate tax evasion.
“The university experienced an intense socio-political conflict between Sheema and Igara factions within the West Ankole Church of Uganda Diocese. This resulted into a breakdown of institutional governance, and consequently, student enrolment plummeted and tuition revenues were eroded,” the Kakooza said.
He added that the Uganda Revenue Authority (URA) had taken administrative recovery steps, including third-party notices and a warrant of distress, to attach available funds in the university’s bank accounts and any movable property.
“The committee observed that the enforcement actions by URA through payment reminders, third party agency notices and warrants of distress would result into immediate closure of the university, disrupting studies of over 1,000 students and rendering staff unemployed,” Kakooza added.
