CSOS demand repeal of tax incentives as power prices remain high
Civil society organizations under the Tax Justice Alliance Uganda, a coalition of 60 NGOs, have protested the Ministry of Finance’s call to extend the income tax exemption for the Bujagali hydropower plant until June 2025. They argue that despite the waiver, the intended benefits have not been realized, as electricity tariffs remain excessively high for consumers. The coalition is calling for a repeal of the tax incentives policy to reduce the fiscal burden on the country.
The government initially granted a five-year income tax exemption to the Bujagali hydropower plant, which has now been extended until 2027 at an estimated cost of 80.69 billion shillings.
Meanwhile, Deputy Speaker of Parliament Thomas Tayebwa has criticized the Auditor General’s recommendation to extend Bujagali’s tax waiver, pointing out that the company paid dividends totaling 475 million dollars to shareholders between 2013 and 2022.
