Uganda’s 12th Parliament has approved a Shs8.92 billion tax waiver for Fresh Cuts Uganda Limited, following a heated debate over the struggling meat-processing company’s financial situation.
The decision was reached after Speaker Jacob Markson Oboth put the matter to a vote, with the Ayes prevailing and Parliament ultimately approving the Fresh Cuts Uganda tax waiver.
The tax arrears reportedly cover income tax, Value Added Tax (VAT), PAYE and withholding tax owed by the company.
According to reports presented before Parliament, Fresh Cuts Uganda has been facing serious financial difficulties, including a reported negative net worth of about Shs22 billion in 2022 and substantial outstanding bank loans.
The tax waiver was recommended by the Uganda Revenue Authority (URA) and the Ministry of Finance, with authorities arguing that the relief could give the company an opportunity to recover financially.
The government also expects the relief to support Fresh Cuts Uganda’s planned investment in a beef-fattening project, potentially strengthening its operations in Uganda’s livestock and meat-processing sector.
MPs considered both majority and minority committee reports before eventually endorsing the Shs8.92 billion tax waiver.
The decision is expected to significantly reduce the company’s immediate financial burden and give Fresh Cuts Uganda an opportunity to restructure and pursue its planned expansion.
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