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By Godfrey Kiyingi/KMA Updates.
The Parliamentary Committee of Finance sent back officials from the Ministry of Finance led by the state minister for finance in charge of general duties Henry Musasizi for failing to convince the committee why they should exempt seven companies from paying taxes worth over 13bn.
The committee chaired by Amos Kakunda also got concerned after the minister smuggled more than four companies to benefit from the tax waiver contrary to the original submission of three companies in parliament.
At first, the Ministry of Finance had tabled three companies including Makerere Business Institution with a tax exemption of over 239m shilling, Nkumba University 4Bn shs, and J2E Investment Corporation LTD over 2bn to be exempted from Payee and Income taxes.
However, to the shock of the committee, Minister Musasizi tabled a fresh list with four more companies including Mr. Donati Kananura with a tax exemption of over 3bn, M/S Nicontra Ltd 931m, Mr. Peter Lokwang 385m and Busoga University with 783m shillings.
It’s from this that the chairperson of the committee Kakunda excused the officials and granted them a week to reappear before the committee with full detailed tax files of the companies justifying their reasons for exemptions
Meanwhile, also some of the committee members like Elgon North County MP Gerald Nangoli challenged Minister Musasizi to explain the criteria used to select the companies to be exempted warning that such tax exemptions to few companies are setting a bad precedent that may attract more limping companies to demand for the some leading to lose of taxes