NEWS- Civil Society Organizations (CSOs) under the auspices of the Tax Justice Alliance Uganda, alongside representatives from the Private Sector have opposed Governments proposal to, have the Amendment of the Income Tax Act by exempting the Income of Bujagaliu Hydro Power Project from being taxed, up to 30th June 2032.
The exempting of the income of Bujagali Energy Limited (BEL) intends to ensure that the company recovers its investment costs and begins to earn a profit that would be taxable. It would also ensure that electricity generation and supply remain affordable, thus reducing operational costs (tariff) of consumers and businesses.
The government contends that failure to extend the exemption would result in Bujagali’s power generation tariff increase by 15.5% from 8.31US cents per unit to 9.60 US-Cents thus pushing the end-user tariff from UGX. 45.8 Per Unit to UGX. 881.7 Per Unit.
However, Aloysius Katerega from the Southern and Eastern Africa information and trade Negotiations institute (SEATINI) on behalf of civil society us urging members of parliament to reject the proposed amendments Uganda is projected to lose UGX.115.47bn or US$31.55 million annually, if the income tax exemption is awarded according to the certificate of financial implication issued by the Ministry of Finance.
