Members of Parliament have questioned a government proposal to waive Shs18.8 billion in tax liabilities owed by New Plan Limited, demanding clear justification for granting the company a remission under the law.
The concerns were raised on Tuesday, 27 January 2026, as the Minister of State for Finance (General Duties), Hon. Henry Musasizi appeared before the Committee on Finance, Planning and Economic Development chaired by Hon. Amos Kankunda to present the proposal.
New Plan Limited is a Ugandan engineering, procurement and construction and consultancy firm that has operated mainly in the oil, gas and energy sectors for over 30 years.
Musasizi first presented the proposal to Parliament on Tuesday, 16 December 2025 at a sitting chaired by Deputy Speaker Thomas Tayebwa.
Tayebwa then referred the matter to the Committee of Finance for scrutiny.
The minister is seeking parliamentary approval under Section 43 of the Tax Procedures Code Act. The Act empowers the minister, with the approval of Parliament, to remit tax liabilities where recovery is not feasible due to hardship, impossibility, undue difficulty or excessive cost.
According to the submission, New Plan Limited has an outstanding tax liability of Shs18.86 billion arising from assessments covering the period January 2016 to December 2020.
Of this amount, Shs9.43 billion is principal tax while penalties and interest account for more than Shs9.4 billion.
The liability followed an audit conducted by the Uganda Revenue Authority (URA) in May 2022. The audit established under-declaration of sales, under-declaration of Value Added Tax (VAT) on imported services, incorrect application of the law on input tax apportionment, and ineligible claims on entertainment expenses.
It also found that the company failed to withhold tax from supplier payments and did not declare employee benefits for Pay As You Earn (PAYE) purposes.
Musasizi said that New Plan is facing severe financial distress following disruptions to major projects.
“For nearly 30 years, the company has provided engineering and consultancy services to critical national infrastructure projects,” Musasizi said citing its involvement in the East African Crude Oil Pipeline (EACOP), electricity generation projects at Karuma, Isimba, Bugoye and Namanve, as well as projects in Buliisa and Kingfisher
He added that the company’s financial position deteriorated following the suspension of EACOP-related activities during the COVID-19 period, which resulted in the lay-off of more than 700 staff.
However, he noted that about 300 highly specialised oil and gas and occupational health and safety personnel were retained due to the nature of their skills.
To sustain its operations, Musasizi said the company obtained loan facilities amounting to Shs11.2 billion from DFCU Bank. However, due to lack of operational contracts and working capital, the company has since failed to service the loans, prompting the bank to move towards auctioning its property.
However, members of the committee raised strong objections to the proposal, questioning both the justification for the waiver and the transparency surrounding the company.
Hon. Xavier Kyooma (NRM, Ibanda County North) said there is no ground for granting a tax waiver to New Plan Limited, arguing that the company had not met any of the legal conditions required for remission.
“May I know who this New Plan is, who are the directors, what is it exactly?” Kyooma said adding that, ‘I have looked at how the tax liability came about and I do not see any forgiving ground for New Plan. When you look at VAT liability, New Plan could not have incurred any tax liability if it was declaring well. It is entirely an indiscipline’.
Kyooma added that concealing employees’ benefits and failing to remit PAYE was not forgivable, noting that the company acted as an agent of government when collecting these taxes.
Hon. Richard Wanda (NRM, Bungokho Central County) also questioned claims of financial distress, pointing to the scale and nature of the projects undertaken by the company.
“New Plan has participated in big, financially lucrative businesses like the East African Crude Oil Pipeline and electricity projects,” Wanda said.
The Vice Chairperson of the committee, Hon Moses Aleper said there was need for deeper scrutiny of both the company and its request for a waiver.
“Something is not clear with this company. We need to look at the audit report to understand the issue deeper. If tax is not paid here, where is the money going?” Aleper said.
Musasizi asked the committee to grant more time for further engagement, saying the parties willlgo back, reorganise and return with additional information to address the concerns raised by members.
The company is registered under the Oil and Gas Division for tax purposes and provides specialised engineering, construction, and occupational health and safety services.
