EnviroServ Uganda Limited has secured a temporary lifeline in its bitter Shs 92 billion tax battle with the Uganda Revenue Authority (URA) after the High Court’s Commercial Division halted execution of a contested ruling.
Lady Justice Susan Odongo, in an electronic ruling delivered on August 17, granted a stay of execution on the Tax Appeals Tribunal (TAT) decision that had empowered URA to recover the disputed sums. The judge emphasized that denying the stay would impose greater hardship on the waste management giant, which plays a critical role in Uganda’s oil and gas sector.
The dispute stems from URA’s reassessment of Shs 69.4 billion in principal tax and Shs 22.6 billion in additional tax. EnviroServ argues that enforcing the decision before its appeal is heard would cripple operations, threaten jobs, and undermine investor confidence.
While URA opposed the stay, claiming EnviroServ failed to show irreparable loss or provide adequate security, Justice Odongo ruled otherwise but imposed a key condition. The South African-owned firm must deposit 30 percent of the decretal sum, either in cash or via a bank guarantee, within 30 days. Failure to comply would see the stay automatically lapse.
The company has already filed Civil Appeal No. 079 of 2025, challenging the TAT’s June ruling that upheld URA’s tax assessment. The case is now headed for a full hearing, keeping alive one of Uganda’s most closely watched corporate tax disputes.
This ruling highlights growing friction between URA and multinational firms, particularly in strategic sectors like oil, gas, and waste management, as government steps up efforts to mobilize domestic revenue.
Takeaway:
The High Court’s decision offers EnviroServ temporary relief, but the battle is far from over. The outcome of the appeal will not only shape the company’s future in Uganda but could also set a precedent for how major tax disputes involving foreign investors are handled.