AFRICA ( Commonwealth Union) _ The circumstances surrounding the Minister of Energy and Mineral Development’s decision to waive Sh616 billion in taxes on gold exports will be the subject of a parliamentary investigation. Following a motion by the Leader of the Opposition, Hon. Mathias Mpuuga, to form a select committee to look into the subject, the investigation was decided to begin.
The discussion about the statement regarding taxes on gold exports made by the Minister of Energy and Mineral Development, Hon. Ruth Nankabirwa, came up during the House session on Tuesday, April 25, 2023, which was presided over by Deputy Speaker Thomas Tayebwa.
The Select Committee, according to Mpuuga’s proposal, should look into the circumstances surrounding the statutory instrument’s issuance, take into account agreements between the Uganda Revenue Authority (URA) and gold exporters that weren’t laid out on the floor of parliament, and consider issues related to the minerals industry after it has been established.
The agreement between the gold exporters and the Uganda Revenue Authority has not been laid before Parliament. According to Hon. Nankabirwa, the purpose of the statutory instrument was to collect unpaid export charges on gold arrears. Several lawmakers were shocked at the way gold refiners and exporters have been receiving tax exemptions based on a presidential directive during the discussion.
The minister appeared before the House, and the Butambala County MP, Hon. Muwanga Kivumbi, demanded a copy of the presidential decree.
“Presidential directives are usually issued in writing. When we are losing money, ministers frequently arrive and claim they were acting on orders from the President. We would have anticipated you to put that order on hold. Connivance, he continued.
According to Hon. Jonathan Odur, a member of parliament representing Erute County South, the powers of the minister only allow for rules on levies, fees, and charges; a waiver of back taxes is not included. Hon. Cecilia Ogwal, a representative for the Dokolo District, stated that it is the minister’s and the attorney general’s duty to advise the president accordingly. She demanded that the statutory instrument be repealed so that the corporations may use the money they had already received in post dated checks for other uses.
