Uganda: Gold Lifts Export Earnings.


Gold exports lifted foreign exchange receipts in March and April, which could suggest an end to a long standoff between the government and dealers over tax-related issues.

However, no details have been provided to show the performance in May.

The data also indicate that gold exports during March and April were higher than the average of 2,400 kilograms exported before gold dealers suspended the exportation of the commodity over a tax dispute in 2021.

Uganda had before the suspension, on average, exported gold worth $172.2m, making the commodity the country’s most valuable export.

Last year, the Bank of Uganda indicated that gold dealers had lifted the suspension, resuming exports in June, which returned a value of 165.9m.

However, there has been mixed trade data as the government is yet to settle the tax dispute. Gold had before the disruptions become Uganda’s largest single export, contributing at least 44 percent of total export earnings.

The government had proposed a charge of $200 (Shs762,356) for every kilogram of exported gold, which was later implemented.

However, this prompted gold dealers to suspend the export of gold, citing the introduction of an inconsiderate charge that would leave them counting losses.

‘The exports in March and April lifted the country’s export earnings, which during the period rose to $681m in March and $538m in April.

Dr. Adam Mugume, the Bank of Uganda director for research, has previously indicated that Uganda’s export receipts had been impacted by the failure to register gold exports due to a tax-related dispute between the government and dealers.

However, the government has been engaging gold dealers to come up with an agreeable levy.

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