What you need to know:
- Gold continues to be an important commodity in Uganda’s export structure, accounting for at least more than 45 percent of export earnings
Uganda exports an average of at least 35,418.5 kilogrammes of gold annually, according to data from the Auditor General’s report.
Gold continues to be an important commodity in Uganda’s export structure, accounting for at least more than 45 percent of export earnings.
During the period ended June 2022/23 the Auditor General indicated that gold exports had grown to 40,648.2 kilogrammes from 30,189.71 kilogrammes in the same period in the 2021/22 financial year.
The growth in gold exports, according to data from Bank of Uganda, has remained stable rising to a cumulative of 3,602 and 35,344 kilogrammes in the two years to December 2020.
However, the report indicated that even with the growth in volumes, Uganda Revenues Authority had failed to collect almost Shs52b in gold levies, due to a restraining order that had stopped government from enforcing the Mining and Minerals (Export Levy on Refined Gold) Regulations, 2023.
Three gold refineries, including Bullion Refinery, Aurnish Trading and Metal Testing and Smelting, sued government in a case in which they sought to stop URA from collecting levies stipulated under the Mining and Minerals (Export Levy on Refined Gold) Act, arguing that the East frica Customs Management Act 2004 and the Protocol for Establishment of the East African Community, prohibit payment of import duties and taxes on goods brought into the country for processing.
Much of Uganda’s gold is imported for processing and is eventually exported to mainly the Middle East. However, on Monday court declined to issue an injunction in support of the application.
The Auditor General’s report indicated that the outstanding levy was expected to be $200 for every exported kilogramme of the commodity as stipulated by the Mining and Minerals Regulations, 2023.