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Ministry of Energy to introduce new tax on gold exports

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Simon Kabayo
Simon Kabayohttps://eagle.co.ug
Reporter whose work is detailed

The Ministry of Energy and Mineral Development is considering introducing a new tax on all gold exports.

This is being considered in the Mining and Minerals (Export Levy) Regulations which are currently being revised by the ministry.

 According to the draft regulations seen by Eagle Online, the standard levy for all gold exported out of the country is meant to avoid loss of revenue.

 “The levy referred to in sub regulation (1) shall be paid by the exporter to the Uganda Revenue Authority at the time the processed gold is exported out of Uganda,” the regulations read in part.

The ministry spokesperson, Mr. Solomon Muyita, said the minister was still reviewing the regulations.

“The permanent secretary was reviewing the document before the minister could sign,” he said.

The regulations were made in exercise of the powers conferred upon the minister responsible for mineral development under section 287(2) (s) of the Mining and Minerals, Act, 2022

 The proposed regulations also state that processed gold refers to refined gold with a minimum fineness of 99.5% purity since the export of unrefined gold was banned when the Mining and minerals act, 2021 was signed into law on 17 February 2022.

The above regulation will be a revision from the $100 (Shs360,000) for each kilogram of refined gold exports stated in the Mining and minerals Act, 2021.

However in July 2021, the gold dealers rejected a five percent levy that had been imposed on gold exports by the government and suspended gold exports for close to a year until the Finance ministry stayed the implementation of the levy.

This comes a month after URA signed a Memorandum of Understanding (MoU) with the Gold Refiners, Exporters, and Dealers Association of Uganda (GREDAU) to streamline relations.

Under the MoU, gold dealers pledged to become tax compliant and pay existing tax arrears as far back as July 2021.

In addition, they would share information on the export and import of gold, alert URA of any illegal gold dealers, cooperate with URA in the collection of taxes and advise on any entities that are suspected of engaging in smuggling, tax evasion, and other illicit activities in the gold industry.

The MoU further discloses that URA shall recognize the association as a legal entity, educate gold dealers on their tax obligations and ensure that there is tax compliance.

Gold exports had hit Shs7 trillion as reported by URA in FY 2021/2022.

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