UGANDA, Kampala | Real Muloodi News | Parliament has rejected a government proposal to exempt businessman Donati Kananura from paying USh2.7 billion in taxes, including rental income tax.
The request, made by the Ministry of Finance, was based on Kananura’s alleged health challenges, but lawmakers found the justifications insufficient to warrant a tax waiver.
The Ministry of Finance sought to relieve Kananura from Value Added Tax (VAT) obligations of USh1.28 billion and rental income tax of USh1.14 billion, citing his health issues.
Kananura has reportedly been dealing with conditions such as diabetes, prostate enlargement, and partial sight loss, which were said to have significantly impacted his ability to manage his real estate business finances.
However, after reviewing the request, the Finance Committee, led by Chairperson Amos Kankunda, concluded that the taxpayer’s alleged health challenges did not meet the legal or financial criteria for a tax exemption.
“While processing this request, the Committee was not convinced on the basis of the taxpayer’s application for a tax waiver,” Kankunda said. “Accordingly, the Minister conceded and withdrew the tax waiver request by Mr Donati Kananura.”
The request was originally presented in August 2024 by Henry Musasizi, Minister of State for Finance. Musasizi had argued that Kananura’s medical conditions were causing significant financial strain, including medical expenses and outstanding loans tied to his rental properties.
The minister suggested that Kananura’s deteriorating health had hindered his ability to meet tax obligations, including the rental income tax.
Despite the government’s appeal, Parliament remained firm in its stance that personal health challenges should not be used as a basis for tax exemption.
Lawmakers emphasised the importance of enforcing tax compliance for all individuals and businesses, including those in the rental sector, which generates a significant portion of national revenue.
For Kananura, this decision means must either settle his outstanding taxes or seek legal remedies to address the financial challenges. This ruling could serve as a precedent for future tax exemption requests, especially within sectors like real estate where rental income tax is a major fiscal concern.
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