Parliament's Committee on Finance, Planning and Economic Development has recommended that government write off Shs1.864 billion in outstanding taxes owed by K-Roma Limited, the manufacturer of BELLA Wines and Juices. The recommendation, contained in an October 2026 committee report, asks the Minister of Finance to waive the company's outstanding Value Added Tax, Income Tax and Local Excise Duty, including principal tax, penalties and interest. The proposed relief covers tax arrears accumulated between June 2019 and June 2024.
K-Roma, established in 2008, is described as an indigenous agro-processing enterprise and pioneer in producing organic wine from locally sourced raw materials. The company manufactures wines, juices, hibiscus tea and other beverages using tropical fruits sourced from Ugandan farmers, and buys raw materials directly from smallholder farmers. However, K-Roma has struggled with declining sales, slow-moving inventory, unpaid debts from retail outlets that subsequently closed and the effects of the COVID-19 pandemic. The Uganda Revenue Authority previously attempted to recover the arrears through demand notices and enforcement measures, including appointing Carrefour Hypermarket as an agent to collect taxes in September 2024, but these efforts did not yield results because of the company's financial circumstances.
Financial records presented to Parliament reveal the severity of K-Roma's position. The company accumulated losses of approximately Shs668.3 million in the year ending June 2025, up from Shs563.3 million the previous year. Its current liabilities stood at approximately Shs2.337 billion against current assets of Shs487.5 million, creating a working capital deficit of about Shs1.844 billion. Cash balances fell from Shs9.2 million in 2024 to Shs4.4 million in 2025. According to the tax breakdown, Local Excise Duty accounts for the largest share at approximately Shs1.389 billion, representing 74.5 percent of the total outstanding liability, while VAT accounts for Shs409.4 million and Income Tax approximately Shs65.4 million.
The committee recognised K-Roma's contribution to domestic manufacturing and agricultural value addition, particularly its reliance on locally sourced inputs and links to smallholder farmers. It also noted that the company operates formally while facing increasing competition from informal wine manufacturers outside the formal regulatory framework. K-Roma told the committee it earns only Shs200 in net profit after tax from every 750-millilitre bottle sold, which has a factory-gate price of Shs15,537. The committee separately recommended that the Minister of Finance present an annual tax performance report to Parliament by the end of September. The proposed waiver remains subject to government action and should not be treated as an approved tax write-off.
Revenue performance data presented to Parliament shows considerable fluctuation. The company's revenue rose to Shs828.9 million in 2021 before falling to Shs425.2 million in 2023 and recovering to approximately Shs505.5 million in 2024. Between 2010 and June 2026, K-Roma paid cumulative taxes of approximately Shs1.075 billion, though its outstanding liabilities for the periods under consideration are significantly higher.