The State Minister for Finance, Henry Musasizi, has warned that if Parliament does not extend the income tax exemption for the Bujagali Hydropower project, power prices will increase by 15.5 percent.
Musasizi made the revelation on Wednesday while appearing before the parliamentary committee on finance to present the income tax amendment bill 2025, which seeks a one-year extension of the income tax exemption.
The minister informed MPs that denying this exemption will cause Bujagali Energy Limited’s generation tariffs to rise by 15.5 percent, from 8.31 US cents per unit to 9.60 US cents per unit.
“Bujagali Limited generation tariff will increase by 15.5 percent and electricity end-user tariff is also projected to increase,” Musasizi said.
Musasizi explained that this, in turn, will increase electricity end-user tariffs from Shs459.8 per unit to Shs881.7 per unit, ultimately impacting the cost of locally produced goods.
