Government lost Shs10.6328 billion in revenue from gold export levies in the financial year ending June 2023, the Committee on Commissions Statutory Authorities and State Enterprises (COSASE) report indicates.
Last year, URA recorded exports of various mineral products and ore. These included other Portland cement, whether in the form of clinkers, other hydraulic cement, Quicklime, salt and pure sodium chloride, raw salt, plasters of calcined gypsum, limestone flux, limestone and other calcareous stone used in the manufacture of lime, cement clinkers, Portland white cement, other clays, sandstone, natural barium sulphate, slaked lime, pebbles, gravel, broken or crushed stone, and others.
Extracts of other minerals exported except gold during the period under review established that 6,469 instances worth a total of Shs72.49 billion, whereby 22 mineral categories were exported without any assessment and payment of the resultant taxes on exportation.
The committee stated that the tax body noted that despite several requests and correspondence with the Ministry of Energy and Mineral Development aimed at ensuring that the enabling law is passed to facilitate the collection of export levy on processed gold and other minerals, there has been no enabling law to date.
“Information provided to the Committee indicates that lack of assessment and payment of the resultant taxes on exportation hindered tax collection, leading to a loss of over Shs10.632 billion in revenue from gold export levies alone,” the committee stated in the report.
MPs observed that whereas it was within the ambits of the Minister to issue statutory instruments or regulations as a remedial intervention measure to facilitate revenue collection on mineral exports, she failed to do so, resulting in a colossal loss of a combined Shs72 billion during the period under review.
“Inability by URA to assess and subject the exporters of the affected minerals to tax was caused by the absence of legislation, thereby exposing the government to the loss of revenues that could have been realised on mineral exportation,” MPs said in the report.
