AFRICA ( commonwealth Union ) _ Uganda and the United Arab Emirates (UAE) have reached an agreement on the recovery of tax revenues from gold shipments. The deal was announced in a joint statement by the two countries. The dispute began in 2019, when Uganda accused the UAE-based company, African Gold Refinery (AGR), of under-declaring the value of its gold exports. Uganda claimed that AGR had cheated it out of millions of dollars in taxes, which should have been paid to the government.
In response, the Ugandan government suspended the export licenses of AGR and other gold exporters in the country. AGR denied any wrongdoing and challenged the suspension in court. After lengthy negotiations, Uganda and the UAE have agreed on a formula for calculating the amount of tax owed to Uganda. The statement did not give details of the formula, but said that both sides were satisfied with the outcome.
Uganda’s Minister of Energy and Mineral Development, Ruth Nankabirwa stated that the agreement we have reached today will help to restore confidence in Uganda’s gold sector and ensure that our country receives its fair share of the revenue from gold exports and also it would enable the company to resume its operations in Uganda.
Moreover, Alain Goetz, the CEO of AGR added that they are pleased to have reached a resolution to this matter and look forward to working with the Ugandan government to support the growth of the gold sector in the country.
Uganda is a major gold producer in the region, with annual exports of around $1 billion. The sector has been plagued by allegations of smuggling and tax evasion, prompting the government to tighten regulations in recent years. The agreement with the UAE is seen as a positive development for Uganda’s gold sector, as it will provide clarity on tax issues and help to boost investor confidence.
