The Ministry of Finance has stated there might be no extra export of unrefined gold after President Museveni has accented to the Mining and Minerals Invoice, 2021. 

Whereas responding to Monitor’s inquiries concerning the progress of negotiations between authorities and gold sellers to place in place a regular levy for gold exports, Mr Moses Kaggwa, the Ministry of Finance appearing director financial affairs, stated many of presidency’s proposals are contained within the Mining and Minerals Invoice, 2021, which has not but been signed into legislation. 

Nevertheless, he famous, the Invoice, if signed into legislation will ban export of unrefined gold and introduce a standardised levy or cost  for all gold exports. 

“Sure there might be no export of unrefined gold. It [Bill] institutes a ban on export of unprocessed gold. We’re ready for the President to accent to the Invoice after which we will do rules to implement the brand new legislation,” he stated, noting that authorities would seek the advice of with all stakeholder to place in place a regular levy below which gold exports can be ruled. 

Authorities, in response to sources conversant in the matter, who requested to remain nameless as a result of they don’t seem to be authorised to discuss it, is more likely to think about a regular charge for all gold exporters, which might introduce a surcharge of $100 (Shs381,178) or 5 p.c levy of the worth of each kilogramme of exported gold. 

In April final 12 months, authorities had proposed a surcharge of $200 (Shs762,356) for each kilogramme of exported gold, which was later applied in July final 12 months.

Nevertheless, this prompted gold sellers to droop the export of the valuable stones, citing introduction of an thoughtless cost that might see them counting losses. 

Authorities subsequently engaged gold sellers, earlier than conceding to calls for, amongst which included modifying the levy. 

Within the August 2021 Ministry of Finance Financial Efficiency report, Finance Minister Matia Kasaija indicated that gold sellers had suspended exports  because of tax-related challenges.

Nevertheless, he stated, authorities had taken be aware of the considerations and had launched into reviewing the problematic tax regime.

The deadlock noticed Uganda expertise a pointy decline in export receipts, which by December 2021, in response to Financial institution of Uganda, had dropped to $324m (Shs1.1 trillion) from $455m (Shs1.6 trillion) in June final 12 months.

The legislation was subsequently amended introducing a ban on the export of unprocessed gold, which in response to Mr Kaggwa, was prompted by the expansion of Uganda’s gold refining trade. 

Uganda at present has 5 gold refineries together with African Gold Refinery, Simba Gold Refinery, Bullion Refinery, Steel Testing and Smelting and Aurnish Buying and selling. 

Two new corporations together with Nuran Ventures-SMC and Wagagai are within the means of establishing refineries to conduct each mining and gold processing.

Gold had by June final 12 months grow to be Uganda’s largest export, contributing a minimum of 44 per cent of the nation’s export quantity.

Dr Adam Mugume, the Financial institution of Uganda director for analysis, in instructed Every day Monitor than that export receipts had been affected by the failure to register gold exports because of a tax-related dispute between authorities and sellers.

Gold buying and selling in Uganda is extremely secretive. Other than export volumes, little is understood concerning the commodity. Nevertheless, some consultants have indicated a lot of Uganda’s gold is sourced from regional neighbours. 

Unrefined gold imports from each Tanzania and Zimbabwe have pushed the 2 international locations into changing into a few of Uganda’s largest commerce companions, in response to Financial institution of Uganda.

For the primary time in years, commerce between Uganda, Tanzania and Zimbabwe has been standing out with Uganda’s imports from Tanzania doubling between April and June final 12 months. In June, Uganda imported items price $125.12m (Shs444b) from Tanzania, which indicated a 43 per cent improve from $70.07m.