Parliament will start an inquiry into the circumstances under which the Minister of Energy and Mineral Development, waived taxes worth Shs616 billion on gold exports.
The decision to start the investigation followed a motion by the Leader of the Opposition, Hon. Mathias Mpuuga to institute a select committee to inquire into the matter.
Mpuuga’s motion emerged from the debate on the statement on taxes on gold exports presented by the Minister of Energy and Mineral Development, Ruth Nankabirwa during the sitting of the House chaired by Deputy Speaker, Thomas Tayebwa on Tuesday.
Mpuuga proposed that once instituted, the Select Committee should investigate circumstances under which the statutory instrument was issued, consider agreements between Uganda Revenue Authority (URA) and gold exporters that were not tabled on the floor of parliament and also considers matters attendant to the minerals industry.
“Aware that the country is grappling with revenue challenges and now that we are in budget period, I beg that, with your indulgence and this rule, this motion be taken and considered. I beg to move,” he said.
In response, Nankabirwa said that the statutory instrument was to collect arrears of outstanding export levy on gold and not to write off gold tax arrears.
“It was recognized that there were already outstanding unpaid arrears from 01 July 2021 owed by gold refiners and exporters which they had already committed to pay under the indemnity agreements. Therefore, a statutory instrument was necessary to collect the arrears accumulated during the period,” Nankabirwa said.
The minister further explained that URA duly issued Demand Payment Notices to collect the levy. However, some gold refiners made a complaint against the same and filed a suit in court where an interim order was issued.
“ln order to provide clarity and further engage the entire industry to enable seamless implementation, the minister wrote to the URA to request that implementation is halted until further guidance is provided,” she said.
However, several Members of Parliament expressed shock over the manner in which gold refiners and exporters have been getting tax exemptions based on a presidential directive.
“Directives of the President are always in written form. When we are losing money, ministers often say they were under instruction from the President. We would have expected you to lay on table that directive. This is connivance”, said Butambala County MP, Muwanga Kivumbi.
