“Through a review of the ASYCUDA extracts of other minerals exported except Gold during the period under review, audit established that 6,469 instances worth a total of UGX.72.490Bn whereby 22 mineral categories were exported without any assessment and payment of the resultant taxes on exportation” (COSASE, June 2024).
This isn’t the total failure of the Uganda Revenue Authority (URA). No this is a systemic fault and a default setting. This is who the National Resistance Movement (NRM) are and how they operate. It is their system, and they have middlemen or businesses earning fortunes on not paying taxes. That’s why there could be this many instances and nobody stopped it or questioned the activity.
The COSASE report on the Revenue Account for the Year Ended 30th June 2023. A report made in June 2024, but first published on Parliament Watch page yesterday on the 1st of October 2024. That’s why we are discussing it now.
This report on the mineral exportation and lack thereof shows how the NRM has failed this industry and is trying to find ways to enlarge itself within the system. Because, why let the owners, middlemen and others earn fortunes on mineral exportation. Meanwhile, the same industry can avoid and not be taxed. This isn’t BUBU sloganeering or the gist of Middle-Income nation vibe. No, this sounds more like rackets and misuse of business to earn profits. Since they all know it won’t be taxed and earn even more on extraction of minerals in the Republic.
Read this!
“Information provided to the Committee indicates that the above situation hindered tax collection leading to loss of over UGX 10.6328n in revenue from gold export levies alone” (COSASE, June 2024).
“The Committee observed that whereas, it was within the ambits of the Minister to issue Statutory Instrument/ regulations as a remedial intervention measure to facilitate revenue collection on mineral exports, she failed to do so resulting into colossal loss of a combined UGX 72Bn during the period under review. Inability by URA to assess and subject the exporters of the affected minerals to tax was caused by the absence of legislation thereby exposing Government to the loss of revenues that could have been realized on mineral exportation” (COSASE, June 2024).
This here is telling stories. Just imagine the ability to export minerals over 6000 times without any assessment or anything. Meaning the authorities are letting these minerals and extracted resources out of the nation without anything coming back in return. The ones exploiting the system is getting profits and the state is losing out. With that being said, there are possibility that insiders and people connected are earning on it. That’s why they don’t mind the practices or uses the loopholes to earn the ends this way.
COSASE just shows how the system works. The ones working in URA isn’t at fault here. It is the system that has created this and is accepting the practice. This is why it is happening and for a reason. The ones within NRM knows about and is fine with it too. There is no pushback or sort of punitive action towards them either. Therefore, you know this is a game that the state knows and is fine with losing. Because some high-ranking officials are earning, and they are untouchable. Peace.
MinBane 