Uganda to waive Shs 35 billion in tax arrears for tea factories

The Ugandan government plans to write off more than Shs 35 billion (approximately US$9.3 million) in tax arrears owed by tea factories. Deputy Speaker of Parliament Thomas Tayebwa announced that the waiver will be implemented once Parliament resumes after its recess.

This intervention is intended to revive Uganda’s struggling tea industry, which has faced a prolonged crisis. Accumulated tax obligations have been identified as a major obstacle preventing some factories from resuming operations. Beyond tax relief, the government is conducting a broader review of the sector and working to streamline management and operational issues to ensure long-term sustainability.

The industry has been pressured by falling tea prices, weakened international demand, and market oversupply. Additionally, rising costs for fertilizer and other inputs, alongside disruptions in key importing markets like Sudan, have further strained the sector.