KAMPALA, Uganda — The Inspector General of Government has directed the Uganda Revenue Authority to recover nearly 40 billion shillings in unpaid taxes from five gold exporting companies.
In a Jan. 8 letter, IGG Aisha Naluzze Batala gave URA Commissioner General John Musinguzi Rujoki 60 days to collect the arrears. The ombudsman identified the companies and their respective debts as Bullion Refinery Ltd. (17.2 billion shillings), Metal Testing Smelting Co. Ltd. (12.8 billion shillings), Aurnish Trading Ltd. (5.2 billion shillings), Africa Gold Refinery (1.7 billion shillings) and Simba Gold Refinery (1.6 billion shillings).
The directive follows an investigation into gold exports totaling 11 trillion shillings between January 2020 and June 2021. During that period, the Mining (Amendment) Act 2021 mandated a 5 percent levy on every kilogram of processed gold exported from the country.
The investigation found that no taxes were paid during that 18-month window due to a presidential directive that waived the 5 percent levy on refined gold and a 1 percent fee on unrefined gold imports. Further complications arose in March 2023 when the minister of energy requested a halt on export levy regulations, leading to a civil suit by gold refineries challenging the legality of the taxes.
While the legal disputes and ministerial interventions created a period where no levies were collected, the minister issued new regulations in May 2024. The current Mining and Minerals Regulations stipulate a levy of $200 per kilogram of exported gold.
According to the IGG, some companies have requested to pay their arrears in installments, while others have filed formal objections to the tax assessments.
URA spokesperson Robert Kalumba did not respond to requests for comment regarding whether the tax body would meet the 60-day deadline.
