Has Uganda’s gold tax incentive run its course?

What the report says

The Independent Uganda reports that Uganda is facing renewed debate over whether its gold tax incentive should continue. The discussion was raised at a mining revenue forum in Kampala on September 1, convened by Oxfam-Uganda, SEATINI and UGEITI, and attended by researchers, civil society representatives, mining executives and government-linked officials. The policy in question dates back to a 2017 decision that zero-rated gold, effectively removing royalties, with the aim of encouraging investment in refining and value addition.

According to the article, critics now argue that the original rationale may no longer apply because Uganda has established gold refineries. Oxfam Uganda’s country director, Francis Shanty Odokorach, said the government should reconsider the waiver and look at how much value the country retains from its mineral wealth. Veteran mining practitioner Zachary Baguma also suggested the policy may have fulfilled its purpose, noting that the country now appears to have a smaller number of functioning refineries after earlier weaker facilities were weeded out.

Jane Nalunga of SEATINI said the tax treatment should be re-evaluated so Uganda can obtain the “true value” of its gold, while still recognizing that investment incentives can matter in capital-intensive industries. The forum discussion was framed around a broader policy choice: whether Uganda should prioritize attracting investment, increasing revenue, or building more local economic benefit from mining.

The piece adds that Uganda has multiple commercially valuable minerals, but mining revenue remains modest compared with wider fiscal needs. It also cites strong gold export earnings, while noting the country often imports gold for refining and re-exports it. This background, the article suggests, is why the royalty debate now carries broader significance for fiscal policy and mineral governance.