economy 9 September 2026 Parliament of Uganda
Uganda to Waive Shs35 Billion Tax Arrears for Tea Factories to Revive Sector
Uganda's Deputy Speaker of Parliament, Thomas Tayebwa, announced that the government plans to waive over Shs35 billion in tax arrears owed by tea factories. This move is part of a broader strategy to revitalize the nation's struggling tea industry. Source: https://www.parliament.go.ug/news/4613/parliament-waive-shs35billion-tax-arrears-tea-factories-tayebwa
The Ugandan government is preparing to write off more than Shs35 billion in tax arrears accumulated by tea factories, signaling a significant intervention to support the country’s tea sector. Deputy Speaker of Parliament, Thomas Tayebwa, confirmed that the tax waiver will be implemented upon the resumption of parliamentary sessions.
This decision comes after persistent advocacy from Members of Parliament representing tea-growing regions, particularly Greater Bushenyi. The accumulated tax debt has been a major impediment for many factories, hindering their operations and contributing to the sector’s financial difficulties.
Tayebwa made the announcement while attending a burial in Bushenyi District, emphasizing the government’s commitment to addressing the challenges plaguing the tea industry. He noted that alongside the tax relief, the government is also working to streamline other operational issues that affect the efficient management of tea factories.
The tea sector in Uganda has faced a downturn due to a sharp decline in international tea prices, weakened global demand, and oversupply in the market. Political instability in key importing nations has further exacerbated the situation. Additionally, rising production costs, including fertilizer prices, have impacted the quality and quantity of tea leaves supplied to factories, creating a difficult economic cycle for farmers and processors.
Beyond the immediate tax relief, the government has outlined a more comprehensive plan for the tea industry’s long-term sustainability, including a projected Shs212 billion investment. This funding will be allocated to factories that demonstrate effective and efficient management practices.
In related news, Tayebwa also shared that President Museveni has allocated land for the development of two industrial parks in Ruhengyere and Nakivale, Ankole sub-region, and an industrial hub in Kyeizoba, Bushenyi District, which are expected to create numerous jobs and stimulate economic growth.