Uganda, Feb. 5 -- The Auditor General has questioned why government continues to give tax incentives to companies that do not meet the perquisite of employing the required number of Ugandans.

In his report for the period ended June 2023, Auditor General John Muwanga noted that during the 2022/23 financial year 22 companies out of the 36 that benefit from tax incentives, were not fully meeting the desirable employment levels of nationals but benefited from tax breaks worth Shs1.4 trillion.

Government requires that beneficiary companies must have a workforce that is composed of more than 50 percent of Ugandans.

Tax breaks are given on the understanding that they free up capital so that companies can employ more staff, majority of whom mu...