Bujagali dam tax waiver extended for another year

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Parliament on Monday passed the Income Tax Amendment Bill 2024, further extending Bujagali Energy Limited's tax waiver for another year.

The Auditor General, John Muwanga, warned over the shillings1.417 Trillion Uganda lost through tax exemptions in 2022/23 alone.

In his December 2023 audit report, Muwanga noted that Uganda’s foregone taxes through tax waivers amounted to shillings1.417 Trillion with Parliament leading the dishing out of tax waivers worth shillings1.293 Trillion, while the Ministry of Finance waived taxes amounting to shillings118.5b and John Musinguzi, Commissioner General of URA also caught the exemption craze by exempting taxes worth shilling 5.575b.

However, Henry Musasizi, Minister of State for Finance who had earlier brought Bujagali's request through a letter as opposed to having it included in the tax Bills, asked to have the waiver extended for a year and assured MPs that the anticipated audit would be complete within six months.

Muwanga Kivumbi (Butambala County) noted, “I think enough is enough, let tariffs go high, after all, we have a lot of power on our grid, let us take leverage of the dams which we have built and refuse this extension of Bujagali because what is happening is becoming impunity, they take this Parliament for granted, they don’t respect processes, last minute they sneak a ka letter. Let us refuse and see what is happening in this country.”