Parliament Questions UGX19 Billion Tax Waiver for Newplan Engineering Firm Linked to Oil and Power Contracts Finance Committee questions a proposed UGX18.86bn tax waiver for Newplan Ltd, citing unpaid VAT and PAYE despite EACOP and power contracts.

Parliament’s Committee on Finance, Planning and Economic Development has pushed back against a proposal to waive UGX18.86 billion in tax arrears for Kampala-based engineering consultancy Newplan Limited, questioning both the justification for the relief and the company’s failure to remit statutory taxes despite involvement in lucrative national infrastructure projects.

The tax waiver request, tabled yesterday, was presented by the Minister of State for Finance (General Duties), Henry Musasizi, who cited sustained financial distress, high indebtedness and the difficulty of recovering the taxes as grounds for remission under Section 43 of the Tax Procedures Code Act.

The proposal covers outstanding Value Added Tax (VAT), Pay As You Earn (PAYE) and Withholding Tax amounting to UGX18,863,696,674, following a July 18, 2025 recommendation by the Uganda Revenue Authority (URA).

However, legislators on the Finance Committee said the explanation fell short, especially given Newplan’s role in high-value projects such as the East African Crude Oil Pipeline (EACOP), Karuma and Isimba hydropower dams.

“There is no convincing justification,” committee members argued, demanding full disclosure of the company’s ownership structure and faulting what they described as indiscipline in failing to remit PAYE and VAT, rather than genuine financial hardship.

Several MPs questioned how a firm entrusted with strategic national infrastructure could default on taxes deducted at source, arguing that non-remittance undermines tax compliance and sets a dangerous precedent.

Ministry, URA defend waiver

Musasizi told the committee that URA’s assessment found the tax arrears unlikely to be effectively recovered, citing prolonged financial strain triggered by the COVID-19 pandemic, suspension of works on EACOP during lockdowns, and heavy borrowing to sustain operations.

Parliament Watch, a Centre for Policy Analysis platform indicates that URA Commissioner General John Musinguzi, in a letter to the Ministry, stated that a review of Newplan’s financial records showed the company was highly indebted and experiencing sustained distress, warranting remission under the law.

“This Ministry is satisfied with URA’s submission that the tax due in this case cannot be effectively recovered,” Musasizi said, adding that enforcing recovery could worsen the firm’s financial position without yielding meaningful revenue.

MPs question selectivity

Concerns were also raised on the floor of Parliament about the criteria used to select beneficiaries of tax waivers, with Joseph Ssewungu (Kalungu West) questioning why Newplan’s case was prioritised over other struggling firms, particularly local companies.

Company profile and ownership

A Newplan Limited, formerly Norplan Uganda Limited, was registered in 1995 as a joint venture between Norplan of Norway and Lawrence Levy Omulen. The firm rebranded in 2008 and became a Ugandan-owned company in 2009 following a management buyout.

In 2014, Norway’s Multiconsult ASA acquired Norplan AS’s 40% stake, before the company became 100% Ugandan-owned in 2017, with Newplan Group Limited holding 90% and employees owning 10%.

The firm has since expanded regionally, establishing operations in Rwanda and Kenya, and diversifying into construction, materials testing and engineering procurement.

Newplan has been associated with Mr. Isaac Serukenya who in previous media interviews described the company as a leading local consultancy with a competitive edge derived from deep knowledge of Uganda’s infrastructure landscape, involvement in oil and gas, energy, transport and social safeguards, and strict adherence to ethics and integrity standards.

Committee yet to decide

Despite URA’s recommendation, MPs maintained that firms benefiting from oil and power-sector contracts should demonstrate stronger tax compliance, warning that granting waivers in such cases risks eroding public confidence in the tax system.

The Finance Committee is expected to conclude its scrutiny and submit recommendations to the House before Parliament makes a final decision on whether to approve or reject the waiver.