Finance ministry seeks parliament’s approval to waive Shs 1.3bn UCA tax arrears
The proposal was tabled before Parliament on Wednesday by Henry Musasizi, Minister of State for Finance [General Duties], who stated that the request aligns with Section 43 [1] of the Tax Procedures Code Act, Cap 343, which empowers the Minister of Finance to waive taxes for any taxpayer, subject to parliamentary approval
KAMPALA, October 31, 2025 — The Ministry of Finance, Planning and Economic Development [MOFPED] has requested Parliament’s approval to waive tax arrears amounting to Shs 1,313,376,467 owed by the Uganda Cooperative Alliance [ UCA ] to the Uganda Revenue Authority [URA], citing severe financial distress.
The proposal was tabled before Parliament on Wednesday by Henry Musasizi, Minister of State for Finance [General Duties], who stated that the request aligns with Section 43 [1] of the Tax Procedures Code Act, Cap 343, which empowers the Minister of Finance to waive taxes for any taxpayer, subject to parliamentary approval.
“Section 43[2] of the Tax Procedures Code Act, Cap 343, provides that where a taxpayer’s case is referred to the Minister by URA and the Minister is satisfied that the tax due cannot be effectively recovered, the Minister shall, with Parliament’s approval, remit in whole or in part the amount of tax due that cannot be effectively recovered,” Minister Musasizi explained.
The Finance ministry’s request is supported by a letter dated July 18, 2025, from John Musinguzi, Commissioner General of the URA, recommending a full waiver of the value-added tax [VAT] arrears owed by the UCA due to its financial hardship.
“As at 16 July 2025, UCA’s tax obligation stood at a principal VAT of Shs 672,527,403, which had accrued interest of Shs 640,849,064, bringing the total to Shs 1,313,376,467,” Musinguzi wrote.
He added: “In light of our earlier communication, we recommend a waiver of Uganda Cooperative Alliance’s VAT arrears amounting to Shs 1,313,376,467, in accordance with Section 43[1] and [2] of the Tax Procedures Code Act, 2014, as amended, on grounds of financial hardship.”
Deputy Speaker of Parliament Thomas Tayebwa referred the matter to the Committee on Finance, Planning and Economic Development for consideration and to report back to the House.
The UCA has in recent years struggled financially following the alleged fraudulent sale of its prime assets, which severely disrupted its operations.
The proposed waiver is expected to ease the Alliance’s financial burden and help it regain stability as a key institution in promoting cooperative growth and rural economic empowerment.
The UCA is set to hold a special Annual General Meeting [AGM] on November 4, 2025. According to a public notice issued on October 17, 2025, by General Secretary, Ivan Asiimwe, the AGM will take place at Hotel Africana in Kampala, under the theme: “Driving Inclusive and Sustainable Livelihoods through Cooperatives for a Better World.”
https://thecooperator.news/uca-to-hold-special-agm-in-november/
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