Gold Export Tax in Uganda: A Comprehensive Guide 2025

Gold Export Tax in Uganda: Uganda’s gold sector has transformed into a cornerstone of its economy, surging from a modest contributor to the nation’s top export earner.

With estimated deposits of 31 million tonnes of gold ore—valued at around $12.8 trillion—the country is positioning itself as East Africa’s refining and trading hub. 

Much of this gold is sourced domestically from artisanal mines in regions like Mubende and Karamoja, or imported from neighbors such as the Democratic Republic of Congo and Tanzania for processing and re-export. 

However, the path to this boom has been rocky, marked by contentious taxes on gold exports that have sparked protests, court battles, and dramatic swings in trade volumes.

Today, understanding these taxes is crucial for investors, miners, and policymakers navigating a sector that generated $3.4 billion in exports last year—37% of Uganda’s total export revenue.

Historical Evolution: From Boom to Bust and Back

Uganda’s gold export story begins in earnest around 2017, when President Yoweri Museveni directed the removal of a 1% fee on unrefined gold imports to encourage refining.

  This aligned with the East African Community Customs Management Act, exempting transit goods from levies. The move attracted refineries like the African Gold Refinery (AGR), turning Uganda into a regional processor. By 2020, gold exports hit $1.8 billion, eclipsing coffee as the leading forex earner.

The turning point came in July 2021 with the Mining (Amendment) Act, which imposed a 5% levy on refined gold exports and 10% on unprocessed gold—replacing a prior $200 per tonne charge. 

The intent was clear: capture more revenue from a sector contributing less than 3% to GDP despite its potential.  Exporters, including refiners handling imported gold, protested vehemently.

The levies ignored distinctions between domestic and transit gold, risking double taxation under EAC rules. Exports halted almost entirely; from July 2021 to February 2023, shipments plummeted to zero at times, costing the economy trillions of shillings in lost revenue.

The Finance Ministry suspended implementation in late 2021, directing the Uganda Revenue Authority (URA) to halt collections. 

Negotiations dragged on, with the Gold Refiners, Exporters, and Dealers Association signing a Memorandum of Understanding (MoU) in January 2023 to settle arrears from July 2021. 

Parliament passed the Mining and Minerals (Export Levy on Refined Gold) Regulations, 2023, formalizing a compromise: $200 per kilogram on refined gold.  This flat rate, equivalent to about 1-2% at current prices, applied universally but exempted transit gold with proof of origin.

By mid-2023, exports rebounded, reaching $2.3 billion in 2023 despite U.S. sanctions on AGR for alleged sanctions evasion. 

The levy was scrapped entirely in the revised Minerals and Mining Bill (awaiting presidential assent as of 2025), but a new statutory instrument in June 2024 reinstated the $200/kg levy while banning unrefined gold exports to promote value addition.  Purity standards rose to 99.9% for exports, aligning with international norms.

Court challenges persisted. Exporters secured interim orders waiving taxes, slashing projected collections from Shs616 billion ($165 million) to Shs43 billion. 

In 2023, the Attorney General vowed to contest these, citing the Mining and Minerals Act, 2022, which mandates levies. 

By 2025, with no major amendments in the Tax (Amendment) Bills, the $200/kg remains the operative rate, though some sources reference a 5% ad valorem levy for domestic-sourced gold.

Current Tax Regime: What Exporters Pay Today

As of September 2025, the gold export tax—officially the Export Levy on Refined Gold—is a flat US$200 per kilogram on processed gold (99.9% purity).  This is paid to the URA at export declaration, separate from royalties (3-5% on mine value) and withholding taxes on dealers. 

Unrefined gold faces a 10% levy if exported (now banned), pushing all output through refineries like Wagagai Mining’s new $250 million facility.

Key exemptions apply: Transit gold (e.g., from DRC) requires a Certificate of Origin and import permit, avoiding the levy.  Royalties for Ugandan-sourced gold are deducted upfront.

Additional fees include a 1% environmental levy and VAT on services, but no outright export duty beyond the levy.  At $83,000/kg spot (June 2025), the levy equates to ~0.24%—a bargain compared to the pre-2023 5%.

This table summarizes the fiscal burden, emphasizing value addition incentives.

Export Procedures: Navigating Bureaucracy

Exporting gold from Uganda demands rigorous compliance to avoid seizures or fines. First-time traders must obtain a Gold Export License from the Directorate of Geological Survey and Mines (DGSM), requiring a Mineral Dealer’s License, company incorporation via Uganda Registration Services Bureau (URSB), and proof of royalty payments.  Gold must be refined locally (e.g., at AGR or Wagagai) to 99.9% purity, certified by an assay report.

Steps include:

1. Sourcing and Documentation: Acquire gold from licensed miners or imports; secure a Certificate of Origin.
2. Refining and Valuation: Process at approved facilities; get an independent valuation for tax assessment.
3. Tax Clearance: Pay the $200/kg levy and royalties; obtain URA export declaration form detailing quantity, value, and destination.
4. Customs Clearance: Submit at Entebbe Airport; comply with anti-money laundering (AML) via beneficial ownership declarations.
5. Shipping: Use secure logistics; major destinations are UAE (98% of exports), Switzerland, and India.

Delays from audits or disputes can tie up shipments for weeks. The Uganda Free Zones Authority (UFZA) offers tax holidays for refinery investors, boosting FDI.

Economic Impacts: Boon or Bane?

The tax saga’s effects are dual-edged. High levies (2021-2023) crippled exports, slashing 2022 earnings to $201 million—an 80% drop—widening trade deficits and idling refineries. 

Auditor-General reports flagged Shs340 billion ($90 million) in uncollected taxes for 2021/22, fueling smuggling via neighbors.  Parliamentary probes estimated $160 million lost to waivers.

Post-compromise, the surge is evident: 2023 exports jumped 10-fold to $2.3 billion, stabilizing forex reserves and funding infrastructure like railways.

  By March 2025, monthly exports hit $3.788 billion, outpacing coffee.  The levy generated Shs250 billion ($67 million) targeted for 2024, streamlining the sector by weeding out evaders.  It spurred local refining, creating 5,000 jobs and attracting Chinese investments like Wagagai’s 1.2-tonne annual output.

Yet challenges linger. Sanctions on AGR diverted flows, and corruption erodes enforcement—URA struggles with underreporting. 

The U.S. State Department notes weak rule of law hampers FDI, despite liberal policies.  Environmentally, unchecked artisanal mining pollutes rivers, while global prices amplify volatility.

Challenges and Controversies

Smuggling remains rife, with gold rerouted through Tanzania during disputes.  Political interference—e.g., ministerial waivers—undermines URA, as MPs decry “legalese” excuses. 

Sanctions and FATF gray-listing (lifted in 2025) heightened AML scrutiny, requiring KYC for all deals.  Investors cite bureaucratic hurdles and arbitrary audits as barriers.

Future Outlook: Towards Sustainable Wealth

The 2025/2026 Budget emphasizes mining reforms, with the $250 million Wagagai mine set to double output.  Proposed amendments may introduce production-sharing for state equity, targeting 10% GDP from minerals by 2030.  Digital tracking via blockchain could curb illicit trade, while EITI compliance enhances transparency.

For stakeholders, the lesson is balance: Taxes fund development, but punitive rates stifle growth. As Uganda refines its golden future, equitable policies could turn shadows of wealth into shared prosperity.