URA Commissioner General, John MusinguziThe Ministry of Finance, through the Uganda Revenue Authority (URA), has announced a fresh waiver on accumulated interest and penalties for taxpayers, in a move designed to promote voluntary compliance and support economic recovery.In a public notice issued last week, URA revealed that under the amended Tax Procedures Code Act, taxpayers who settle their outstanding principal tax liabilities by June 30, 2026, will benefit from a 100% waiver of interest and penalties.The decision comes as businesses continue to navigate the aftershocks of the COVID-19 pandemic, which left many struggling to meet tax obligations. The government hopes the waiver will give taxpayers a fresh opportunity to stabilize operations while meeting their statutory obligations.“Many taxpayers missed out on the last waiver, and we noted this from the requests we received after the closure in January 2025,” said URA Commissioner General John Musinguzi. “This new extension will give businesses room to recover, relieve their burden, and leave them with more cash to reinvest.” Terms of the WaiverTaxpayers who clear all outstanding principal tax (as of June 30, 2024) by June 30, 2026, will have all related interest and penalties waived.Those who pay only part of the principal will receive a pro-rata waiver of interest and penalties.The waiver applies only to domestic tax obligations (not customs duties).Taxpayers with missing returns are encouraged to file and pay to qualify for the relief.Interest accrued between July 1, 2024, and the date of payment is also covered by the waiver.However, URA has emphasized that this will be the final tax amnesty, with no further extensions.Encouraging ComplianceAccording to URA, the waiver will be applied automatically once a taxpayer clears the principal tax, with the relief reflected on their TIN account. Taxpayers can log in to the URA portal or visit their nearest tax office for assistance in checking outstanding balances.Musinguzi urged all eligible taxpayers to take advantage of the window, stressing that failure to pay the principal by the 2026 deadline would leave them liable for the full interest and penalties.“This measure is about building trust between taxpayers and the government. We want to encourage voluntary compliance, not just enforcement,” he added.Business community speaks out“This is a good opportunity worth taking up. I appeal to my colleagues to take on this opportunity,” said Denis Mugabi, a trader in downtown Kampala.According to Samuel Kakeeto, a trader in Kikuubo, the waiver is timely.“I like that it has come early in the financial year,” said Kakeeto.Edgar Ssenkumbi, a trader in Wandegeya, Kampala, noted that although he missed out on the earlier waiver, he is open to maximizing the new opportunity.“This time, I will not miss this opportunity,” said Ssenkumbi.The post URA Waives Interest, Penalties to Boost Voluntary Tax Compliance appeared first on Business Focus.