Members of the Public Accounts Committee directed accusatory remarks at energy ministry officials for their failure to collect approximately 5.3 billion shillings in taxes from gold exporters in a charged Parliament session on February 20, 2024. The tense atmosphere underscored the frustration of lawmakers, who demanded explanations for the shortfall in revenue collection.
The revelation of the unpaid gold taxes, highlighted in the Auditor General’s report for the year ended June 30, 2023, triggered sharp criticism from MPs. The report disclosed that while the government anticipated collecting 5.811 billion shillings in export levies from 7,839 kilograms of processed gold exported, only a fraction of that amount, 428.7 billion shillings, was actually collected by the Uganda Revenue Authority (URA).
During the parliamentary session, Ministry Permanent Secretary Irene Batebe attributed the outstanding export levy of 3.178 billion shillings to three gold exporters who had obtained a court order halting the collection of export levies on gold. Despite efforts to appeal the court order, the exporters continued to export gold without fulfilling their tax obligations.
MPs expressed grave concern over the implications of the failure to recover these taxes, emphasizing the detrimental impact on government revenue and the provision of essential services to citizens. They demanded accountability from the ministry, urging decisive action to address the issue promptly.
Additionally, MPs scrutinized the ministry’s handling of the situation, questioning the efficacy of government efforts to recoup the unpaid taxes. They sought clarification on the steps taken to challenge the court order and ensure compliance with tax regulations.
However, tensions escalated when ministry officials cited delays in tax collection due to a presidential directive, prompting skepticism among lawmakers. Despite claims of a presidential directive, MPs remained unconvinced, demanding concrete evidence to substantiate the ministry’s assertions.
Furthermore, the Auditor General’s report uncovered various irregularities within the ministry, including discrepancies in the payroll, overestimation of the wage bill, and unauthorized recruitment of contract staff. MPs condemned these lapses, urging the ministry to address systemic issues affecting its operations and financial management.
