Uganda Strengthens Border Control Measures for Gold Shipments
Uganda has recently implemented stringent measures to enhance the verification of products entering its borders, particularly focusing on gold shipments.
The Uganda Revenue Authority (URA) issued a notice informing clearing officers of a new rule aimed at ensuring the legitimacy of such imports.
According to a report by the East African, the URA has written to Ugandan airlines, warning that gold shipments will be denied unless exporters provide proof of payment clearance.
This move comes as a response to concerns about the violation of East African Community Customs Management due to the movement of uncustomed gold.
The decision to enforce these measures follows a report by Auditor-General John Muwanga, highlighting the URA’s failure to remit taxes amounting to Ush340 billion ($89.3 million) from gold exports valued at Ush6.92 trillion ($1.8 billion) in the previous year.
The dispute over tax collections arose in April 2022 when a law imposing a levy of five percent on refined gold and ten percent on unprocessed gold for export was enacted.
Exporters and refiners objected to these rates, fearing loss of business to neighboring countries with lower tax burdens. This disagreement led to a decline in official exports and an increase in smuggling activities.
To address this issue and stimulate gold exports, the URA temporarily deferred the application of the one percent export levy and suspended the export fee, following legal directives by Minister for Energy and Mineral Development, Ruth Nankabirwa.
These precautionary steps underscore Uganda’s commitment to enhancing tax collection and ensuring compliance with international trade regulations, particularly in the lucrative gold sector.
Title: Uganda Strengthens Border Control Measures for Gold Shipments
Uganda has recently implemented stringent measures to enhance the verification of products entering its borders, particularly focusing on gold shipments.
The Uganda Revenue Authority (URA) issued a notice informing clearing officers of a new rule aimed at ensuring the legitimacy of such imports.
According to a report by the East African, the URA has written to Ugandan airlines, warning that gold shipments will be denied unless exporters provide proof of payment clearance.
This move comes as a response to concerns about the violation of East African Community Customs Management due to the movement of uncustomed gold.
The decision to enforce these measures follows a report by Auditor-General John Muwanga, highlighting the URA’s failure to remit taxes amounting to Ush340 billion ($89.3 million) from gold exports valued at Ush6.92 trillion ($1.8 billion) in the previous year.
The dispute over tax collections arose in April 2022 when a law imposing a levy of five percent on refined gold and ten percent on unprocessed gold for export was enacted.
Exporters and refiners objected to these rates, fearing loss of business to neighboring countries with lower tax burdens. This disagreement led to a decline in official exports and an increase in smuggling activities.
To address this issue and stimulate gold exports, the URA temporarily deferred the application of the one percent export levy and suspended the export fee, following legal directives by Minister for Energy and Mineral Development, Ruth Nankabirwa.
These precautionary steps underscore Uganda’s commitment to enhancing tax collection and ensuring compliance with international trade regulations, particularly in the lucrative gold sector.
SOURCE:africa.businessinsider.com
