VenturesNow

Uganda loses $160m in taxes over gold levy dispute

Published

2 years ago

May 1, 2023

A report by Uganda’s Parliamentary Committee on Finance, Planning and Economic Development has revealed that the country lost Ush600 billion ($160.77 million) in uncollected tax from the export of gold products since July 2021.

The report says the deficit was due to a dispute with exporters and refiners over levies.

Uganda’s Minister for Energy and Mineral Development, Ruth Nankabirwa, blamed the loss on a dispute between Uganda Revenue Authority and more than 20 gold exporters and refiners.

“From information provided by the Uganda Revenue Authority (URA), only two companies are willing to pay the tax. The other companies have raised concerns, and this is being evaluated,” the minister told parliament.

The difference is linked with Uganda’s Mining Amendment Bill 2021, which proposed a levy of $200 per kilogramme (Ush746,400) on processed gold and one percent of the value of unprocessed minerals.

The rate was later increased to 5 percent of the value of processed gold and 10 percent of the value of unprocessed minerals by the Parliamentary Committee on Finance, Planning and Economic Development.

Gold dealers protested the tax, while gold export records were not recorded by the Bank of Uganda statistics for the period. While the revenue authority published an annual statistics report capturing import and export revenues, gold never features in the reports.

Uganda, like most African countries with mineral resources, lacks the capacity to maximally explore the resources, but is hoping to develop domestic mining within its borders through the Uganda Free Zone Authority (UFZA).

VenturesNow

IMF, Egypt reach agreement for fourth review of Egypt’s $1.2 billion loan request

Published

10 hours ago

December 26, 2024

Ifeoluwa Dada

Egypt and the International Monetary Fund (IMF) have reached a staff-level agreement over the fourth review of the Extended Fund Facility arrangement, which might lead to a $1.2 billion payout under the program.

In March, Egypt, struggling with rising inflation and cash shortages, consented to the $8 billion, 46-month facility. Its economic problems were made worse by a precipitous drop in Suez Canal revenue over the last year due to regional tensions.

Over the next two years, Egypt’s government has committed to raising its tax-to-revenue ratio by 2% of GDP, according to the IMF, emphasising removing exemptions rather than raising taxes.

According to a statement from the IMF, this would allow it to expand social expenditure to support vulnerable populations.

“While the authorities’ plans to streamline and simplify the tax system are commendable, further reforms will be needed to enhance domestic revenue mobilization efforts,” the statement said.

According to the IMF statement, Egypt had also committed to maintaining its commitment to a flexible currency rate and to taking more urgent action to guarantee that the private sector became the primary driver of development.

The IMF’s executive board still has to accept the fourth review’s staff-level agreement.

VenturesNow

Libya’s eastern govt accepts petrol subsidy elimination

Published

10 hours ago

December 26, 2024

Ifeoluwa Dada

In a recent statement, the eastern government of Libya claimed it had reached a consensus on a plan to eliminate gasoline subsidies and would draft a mechanism to carry out the accord.

Additional information on the idea was not released by the administration led by Osama Hamad, a challenger to the internationally acknowledged Tripoli-based government.

However, it is uncertain if Hamad’s government would be able to carry out the plan in the divided nation.

According to the Global Petrol Prices online tracker, a litre of gasoline costs just 0.150 Libyan dinars ($0.03) in OPEC member Libya, making it the second-cheapest in the world.

Following an uprising against former ruler Muammar Gaddafi in 2011, smuggling networks have thrived in the ensuing political unrest and armed fighting. In 2014, conflicting eastern and western governments separated the nation.

A World Bank analysis estimates that the annual value of fuel smuggling from Libya is at least $5 billion.

In a meeting with Mari Barrasi, the deputy governor of the Central Bank of Libya (CBL), located in Tripoli, and four members of the bank’s board of directors, Hamad in Benghazi supported the idea of removing subsidies.

The CBL’s Benghazi branch offices served as the venue for the conference.

The eastern parliament appointed Hamad in 2023 to succeed Abdulhamid Dbeibah, who had been put in position in 2021 under a U.N.-backed procedure that the parliament said had lost its legitimacy.

Dbeibah, who is located in Tripoli, stated in January that he will conduct a public poll on the topic of eliminating gasoline subsidies, but he hasn’t done anything about it since.

According to CBL figures, gasoline subsidies cost 12.8 billion Libyan dinars between January and November of this year. 4.8 Libyan dinars to $1 is the official exchange rate.