economy 3 September 2026 Parliament of Uganda
Parliament Grants Shs8.7 Billion Tax Waiver to Meat Exporter Fresh Cuts Uganda
Lawmakers in Uganda have approved an Shs8.7 billion tax waiver for Fresh Cuts Uganda Limited, a meat exporter, despite some opposition citing insufficient justification. The decision aims to alleviate the company's tax arrears, which have accumulated due to financial distress exacerbated by aggressive tax recovery efforts. Source: https://www.parliament.go.ug/index.php/news/4594/parliament-approves-shs87-billion-fresh-cuts-tax-waiver
Parliament has greenlit a significant tax waiver amounting to Shs8.7 billion for Fresh Cuts Uganda Limited, a local meat exporter. The decision, made during a plenary session chaired by Speaker Jacob Marksons Oboth on September 1, 2026, aims to provide financial relief to the company.
The Committee on Finance, Planning and Economic Development recommended the waiver after concluding that Fresh Cuts met the criteria for financial hardship and undue difficulty under the Tax Procedures Code Act. The committee noted that the company, which employs 110 people and supports numerous farmers, has accumulated arrears in salaries, Pay As You Earn (PAYE), and National Social Security Fund (NSSF) contributions.
According to the committee’s report, Fresh Cuts faced severe financial challenges in 2022, with liabilities far exceeding its assets. A shareholder even wrote off a substantial loan in an attempt to salvage the business. However, aggressive recovery measures by the Uganda Revenue Authority (URA), including the freezing of bank accounts and confiscation of equipment in 2015, reportedly crippled the company’s operations, leading to lost business opportunities.
Despite these justifications, some Members of Parliament voiced concerns. Hon. Gyaviira Ssebina argued that a tax waiver does not address the underlying governance and decision-making issues that contributed to the company’s financial woes. He highlighted significant liquidity challenges, including unpaid loans and salaries, suggesting the waiver was not the appropriate solution.
In a related development, Parliament also approved a Shs2.518 billion tax waiver for Innovations for Poverty Action (IPA). This waiver followed IPA’s voluntary disclosure of liabilities under a 2017 agreement with URA, with the committee faulting URA for a significant delay in processing the waiver request, which impacted IPA’s ability to pay accumulated penalties and interest.
Source: Parliament of Uganda