By Lumpe Media
The Parliamentary Committee on Finance has raised concerns over a proposal to waive Shs18.8bn in tax arrears owed by New Plan Ltd, saying the request lacks sufficient justification.
Lawmakers demanded full disclosure of the company’s ownership and criticised its failure to remit PAYE and VAT, describing the omissions as a matter of indiscipline rather than financial hardship.
The tax waiver proposal was first presented to Parliament on 16 December 2025 and subsequently referred to the Finance Committee for scrutiny.
New Plan Ltd is a Ugandan engineering and consultancy firm involved in major infrastructure projects, including the East African Crude Oil Pipeline (EACOP) as well as the Karuma and Isimba hydropower dams.
State Minister for Finance Henry Musasizi urged the committee to approve the waiver, citing the company’s severe financial distress, the high cost of tax recovery, and its contribution to strategic national projects. He based the request on Section 43 of the Tax Procedures Code Act.
However, MPs questioned why a firm that has secured lucrative contracts on large-scale infrastructure projects would struggle to meet its tax obligations, arguing that companies benefiting from high-value national projects should comply fully with tax laws.
