KAMPALA – Rukiga District Woman Member of Parliament Dr. Sylvia Tumuheirwe Alinaitwe has supported a proposed tax waiver for the Uganda Printing and Publishing Corporation (UPPC), arguing that government has an obligation to support public institutions facing financial challenges while ensuring that tax relief does not result in double benefits.
Alinaitwe made the submission during discussions on the proposed waiver of tax arrears for UPPC, where she explained the importance of considering the accounting standards used by institutions before making decisions on their financial position.
She challenged the assumption that an institution recording profits necessarily has sufficient money available in its bank accounts to meet its tax obligations, explaining that under accrual accounting, profits can be reflected in financial records even when the corresponding payments have not yet been received.
The legislator noted that recorded profits should not automatically be interpreted as readily available cash for settling outstanding tax liabilities, particularly where institutions have significant amounts of money owed to them by clients.
However, she cautioned that the proposed tax relief must be carefully handled because outstanding receivables may already contain a tax component.
She explained that if government grants a tax waiver and the institution subsequently collects its outstanding receivables, it could benefit twice unless proper accounting measures are put in place.
Alinaitwe therefore called for proper segregation and consideration of the tax component within the receivables to prevent a situation where the institution enjoys overlapping financial relief.
Despite raising the concern, the Rukiga legislator maintained that government has a responsibility to support its institutions, describing the proposed waiver as one of the ways of extending that support.
She consequently expressed support for the proposed tax waiver, while emphasising the need for proper financial accountability to ensure that the relief serves its intended purpose.
Her submission comes amid wider discussions in Parliament over tax relief for struggling institutions, including UPPC, as government seeks ways of addressing accumulated tax liabilities and supporting the continued operations of affected entities.
