Parliament Approves Shs4.4 Billion Tax Waivers for Kilembe Mines and K-Roma

The Parliament of Uganda has officially approved the waiver of Shs4.46 billion in accumulated tax and non-tax arrears for K-Roma Limited and Kilembe Mines Limited (KML). The motions were passed during a parliamentary sitting chaired by Speaker Jacob Marksons Oboth.

The waiver for K-Roma Ltd, known for producing Bella Wine, totals over Shs1.86 million, encompassing principal tax, penalties, and interest largely driven by Local Excise Duty, Value Added Tax, and Income Tax. Presenting the Finance Committee report, Hon. Patrick Ocan explained that the company struggled financially due to COVID-19 fallout and stiff competition from informal winemakers. Despite scrutiny regarding poor inventory decisions and a steep sales drop, the waiver was advanced to support the formal enterprise.

Meanwhile, the House also cleared Shs2.6 billion in Non-Tax Revenue owed by the government-owned Kilembe Mines Limited in annual mineral rent. KML has remained under care and maintenance since copper operations ceased in 1982, accumulating arrears after its mining license reverted following a terminated concession in 2017. Lawmakers noted that chronic state underfunding contributed to the default, with the government previously releasing only a fraction of KML’s approved budget.

MPs highlighted that clearing Kilembe Mines’ debt helps pave the way for handing over the mines to a new joint-venture consortium consisting of the Sarrai Group, Uganda National Mining Company, and Nile Fiberboard. However, the decisions drew criticism from opposition figures. Leader of the Opposition Hon. Joel Ssenyonyi questioned the timing and legal compliance of the waivers, arguing that the approvals bypassed statutory requirements under the Public Finance Management Act.

In defense of the measures, Minister for Defence and Veteran Affairs Hon. Kiryowa Kiwanuka stated that the Uganda Revenue Authority had exhausted all collection avenues without success. Speaker Oboth ultimately urged the Ministry of Finance to proactively sensitize the business community regarding eligibility for tax relief provisions.

Read the original report on the Parliament of Uganda.