The government of Uganda is considering banning the export of unrefined gold

The government of Uganda is considering banning the export of unrefined gold

Uganda could stop exporting raw gold if President Yoweri Museveni approves the Mining and Minerals Act of 2021. Gold is the country’s main export in monetary terms.

According to a Ugandan newspaper, the screenif is Mining and minerals bill prepared in 2021 Eventually becoming law, it would ban the export of unrefined gold and impose a flat tax or rate on all gold exports.

This was stated by the interim director of Economic Affairs at the Ministry of Finance Musa KagwaWhich indicated that the government will consult with the relevant parties to decide on a standard tax for gold exports.

At the moment, Museveni’s government is considering the possibility of introducing it $100 extra wage (Shs381,178) or a 5% tax of the value of each kilogram of exported gold.

Already in July 2021The Ugandan government imposed An additional wage of Sh762,356 ($200) per kilogram of gold It was exported, although it later adjusted the tax after bowing to the demands of gold merchants.

However, he now appears ready to agree to the tax, which would put international mining companies operating in Uganda in a difficult position.

Other African countries such as Tanzania And they have already resorted to tightening the conditions for the export of gold extracted in their lands, which caused disputes with mining companies, who complained about changing the terms agreed upon in the exploitation contract.

The Gold tops the list of exports Uganda in June last year, where it contributed at least 44% of the total volume.

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