Lawmakers question Income Tax exemption for Bujagali Power
Lawmakers have questioned a proposal by the Ministry of Finance, Planning and Economic Development (MoFPED) to give Bujagali Hydro Power Project a one-year income tax exemption up to 30 June 2025.The proposal is contained in the Income Tax (Amendment) Bill, 2024 that was presented before the finance committee by the Minister of State for Finance (General Duties), Hon. Henry Musasizi, on Tuesday, 09 April 2024.
Hon. Paul Omara (Indep., Otuke County) said that exempting Bujagali when the project still owes government Shs1.2 trillion is unacceptable.
“We investigated Bujaagali and what we found out was horrendous. Now another tax waiver, that one I am not supporting. I will go with a minority report on that,” he said.
Jinja District Woman Member of Parliament, Hon. Loy Katali, said that giving Bujagali a tax waiver defeats the purpose of mobilising more revenue.
“Do we need to exempt and yet we are looking for funds?” she asked.
URA and finance officials before committee over Bujagali
Hon. Karim Masaba (Indep., Industrial Division, Mbale City) questioned why the minister introduced the exemption at committee stage and yet it was not reflected in the original Bill tabled during plenary.
The Director for Economic Affairs at the finance ministry, Moses Kaggwa, justified that the exemption is intended to reduce the cost of tariffs.
“The way a tariff is computed, it includes tax. High tariffs will affect businesses and we do not want to see businesses close. We agreed with Parliament to extend for a year until the Auditor General completes the audit. Once the audit ends, this will stop,” said Kaggwa.
Minister Musasizi also proposed expansion of excise duty tax to include adhesives, grout and lime in the 2024/2025 financial year.
He explained that the intention of the proposal under the Excise Duty (Amendment) Bill, 2024 is to create fairness in the tax regime.
“This is not a new tax because government already imposes Excise Duty of Shs500 per 50 kilogramme bag of cement and Uganda Revenue Authority has been collecting this tax,” he said.
Musasizi further proposed excise duty beyond mobile money transactions to include other similar payment solutions and agent bank withdraws.
“This proposal [0.5 percent] is aimed at equalising the tax treatment of similar services.
He added, “It is also important to note that the current tax mainly applies to the poor, who largely use mobile money services to conduct transactions, which is not applicable to other payment and withdrawal services that are used by the poor, hence the need to expand the scope of services.”
A proposal of an increase of Shs100 per litre in excise duty on fuel products was also presented before the Committee.
According to Musasizi, the proposal is in line with a government decision following an agreement with Parliament to increase excise duty on fuel products by Shs100 per litre every two financial years, except the COVID-19 period.
“Since the economy has recovered, we think it is time to make the adjustment. In addition, over the last few years, the Uganda shilling has depreciated, and the price of fuel has increased, yet tax has remained the same,” said the minister.
He said the increment will generate an additional revenue of Shs200 billion.
Committee chairperson, Hon. Amos Kankunda, however, said that the proposal will force citizens who rely on kerosene into darkness as they depend on the combustible hydrocarbon liquid for lighting.
“Locals will spend more to have lighting. Is this a reasonable tax increase?” he asked.
Hon. Dickson Kateshumbwa (NRM, Sheema Municipality) called on the minister to move away from imposing taxes but rather find measures leading to economic growth by proposing incentives to sectors that have the potential to generate more revenue.
“We need to push for economic growth, even if it is not related to revenue collection. Right now we are only looking at the short term gains and not long term,” he said.
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Ugandan Citizen Abducted, Held in Secret Detention for Three Months, Sparks Outrage and Calls for Justice
A disturbing new case of unlawful detention has surfaced, highlighting the ongoing human rights crisis in Uganda. A Ugandan citizen was reportedly abducted and held in a secret facility, known as a “safe house,” for three months, only to be released without charge or explanation. This incident, reported by NTV Uganda, has sparked widespread condemnation and renewed calls for accountability regarding human rights abuses in the country.
While the details surrounding the abduction remain unclear, reports indicate that the individual was taken without due process and held incommunicado—an action that has long been condemned by human rights organizations. The victim’s release, with no charges filed and no clear justification, has angered activists and citizens, who view this as yet another case of egregious abuse of power by the state.
“This is a recurring pattern,” said one human rights activist. “Abductions, secret detentions, and unexplained releases have become all too common in Uganda. These acts violate fundamental human rights and erode public trust in the justice system.”
The use of “safe houses,” unregistered detention facilities reportedly operated by security forces, has been a focal point in numerous allegations of torture and illegal imprisonment. Despite repeated calls from both local and international organizations for their closure and accountability for those involved, little action has been taken to address these violations.
This case underscores the urgent need for reform within Uganda’s security apparatus and greater accountability for human rights abuses. Observers hope that drawing attention to these injustices will spur concrete action to bring those responsible to justice and ensure the protection of basic human rights.
As frustration mounts, calls for both domestic and international pressure to hold the government accountable for such crimes grow louder. “One day, there must be accountability for all these crimes against our people,” stated one social media user, reflecting the sentiments of many Ugandans.
National Unity Platform (NUP) President Robert Kyagulanyi has accused Ugandan security forces of using excessive force to disrupt a planned NUP gathering. The allegations were detailed in a statement shared on Twitter, following an event held to honor children of NUP supporters who were killed, disappeared, or detained for their political beliefs.
According to Kyagulanyi, security personnel, under the command of an officer identified as Asiimwe, carried out a preemptive operation early in the morning upon learning of the NUP’s plans. The forces allegedly stormed the premises, arrested workers, and deployed tear gas to disperse those present.
“The criminals under the command of one Asiimwe deployed early morning, arrested our workers, and threw tear gas into our premises. They’ve cordoned off the premises and blocked all people from accessing the place,” Kyagulanyi wrote.
Among those reportedly arrested were Saava Peter, Mudenya Samson, and Turyasingura Samson. Kyagulanyi claimed the detained workers were subjected to beatings and interrogated about their political affiliations, with security operatives labeling them as terrorists.
“These JATT operatives asked the workers who they support politically, branding them terrorists and criminals—their only crime being that they work with us. You can imagine the indignity!” Kyagulanyi lamented.
This incident adds to the growing tension in Uganda’s political climate, where opposition parties frequently accuse the government of stifling dissent. Despite the challenges, Kyagulanyi ended his statement with a message of defiance and optimism, proclaiming, “UGANDA WILL BE FREE.”
NUP Gathering Disrupted: Kyagulanyi Alleges Security Force Harassment and Arrests
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Sudan Demands Apology from Uganda Over Army Chief Muhoozi Kainerugaba’s Threat to Invade Khartoum
Sudan has demanded an official apology from Uganda over “offensive and dangerous” comments made by the chief of Uganda army staff, who threated to invade Khartoum, the Sudan Tribune has reported.
General Muhoozi Kainerugaba, son of Ugandan President Yoweri Museveni and CDF of the Ugandan army, posted two comments on the X platform on Tuesday in which he threatened “to capture Khartoum” with the support of the US President elect Donald Trump after he takes office. The posts were deleted later.
“The government of Sudan demands and official apology from the Ugandan government for the offensive and dangerous comments of the army commander,” Sudan’s foreign ministry said in a statement that the Sudan Tribune said it has seen.
Sudan Demands Apology from Uganda Over Army Chief Muhoozi Kainerugaba’s Threat to Invade Khartoum