Gold exporters want government to cut new taxes


[ad_1]

By MARTIN LUTHER OKETCH

The government is still engaging stakeholders, including gold exporters, who have called for the current commodity tax regime to be revised downward.

Under the Mining (Amendment) Bill 2021, the government imposed a tax of $ 200 on every kilogram of gold exported.

However, the levy has been revised to 5 percent for each kilogram of precious metal refined and to 10 percent for raw metal. In its August economic performance report, the finance ministry said no gold was exported in July, pending a resolution on the levy review.

In July, the finance ministry noted that the government had imposed a 5 percent and 10 percent tax on every kilogram of refined and unprocessed gold, respectively, which traders had asked to be scaled down.

“The [exporters] have asked the government to revise this tax downwards and negotiations are underway to this end. Pending the conclusion of these negotiations, there were no exports of gold from Uganda in July, ”the report reads in part.

As a result, the report notes, export earnings declined for the second consecutive month, in part due to the non-registration of gold exports for the first time in more than six years.

Advertising

Gold is currently Uganda’s largest export commodity, accounting for at least 44% of total export volume, according to Bank of Uganda data.

According to the Bank of Uganda, export earnings in July fell by at least 51 percent, falling to $ 300.3 million (1,000 billion shillings) from $ 455.4 million (1,600 billion shillings). ) in June due to the failure of gold exports during the period.

According to the Central Bank, this is the lowest revenue Uganda has received from exports since May last year, which had fallen to $ 290 million due to the Covid-19 disruption.

[email protected]

[ad_2]

Leave a Reply

Your email address will not be published. Required fields are marked *

*