Uganda Loses $720 Million on the Back of New 5% Tax on Gold Exports

Uganda has lost an estimated $720 million in missed gold exports since July this year as exporters boycott a new tax. In April, the government imposed a levy of 5% on every kilogramme of refined gold and 10% on unprocessed gold for export. The new requirement became operational in July, forcing gold exporters to hold back stock to protest the tax.

In July alone, the country did not have any gold exports for the first time in six years, prompting the government to seek a reversal of the new tax.

Uganda registered a decline in export receipts to the rest of the world mainly due to a fall in gold exports, widening the country’s general merchandise deficit from $196 million in July 2021 to $248.8 million the month after.

Gold has for three years now overtaken coffee to become Uganda’s leading export commodity, earning an average of $180 million per month for the government in revenues.

According to the Gold Mining Status Report February 2021 released by the Ministry of Energy and Mineral Development, one million ounces of gold are estimated in the areas of Mashonga (Bushenyi) and 500,000 ounces of gold in Kampono, Ibanda district. Gold occurs in several places in the districts of Buhweju, Bushenyi, Ibanda, Rubirizi and Mitooma.

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