Uganda Revenue Authority Reports 40 Per Cent Rise in Mining Sector Tax Collections

For Immediate Release

KAMPALA, UGANDA — The Uganda Revenue Authority has reported a 40 per cent increase in tax collections from the mining sector in the 2024 to 2025 financial year, attributing the growth to record gold prices, expanded formal sector participation, and improved compliance enforcement across Uganda's mineral economy.

Total mining sector tax revenues reached UGX 1.84 trillion in the financial year, up from UGX 1.31 trillion in the prior year. The increase encompasses royalty payments, corporate income tax, withholding taxes on payments to contractors and suppliers, and value added tax on goods and services consumed by the sector.

The growth in tax revenues significantly outpaced the growth in gold prices over the same period, indicating that the increase reflects not only the price effect but also a genuine expansion of the formal sector tax base. The URA attributed a meaningful portion of the outperformance to the improved compliance achieved through enhanced monitoring of mining sector transactions and the integration of digital reporting systems across licensed operators.

Artisanal sector formalisation has also contributed to the revenue improvement. As more artisanal operators enter the formal sector through the Community Mining Zones programme and the national registration scheme, a greater proportion of the sector's production passes through taxable channels.

"A 40 per cent increase in mining sector tax revenues is a direct validation of Uganda's formalisation strategy. The government is not simply collecting more from the same operators at higher prices — it is collecting from a broader base of formal sector participants whose activity was previously invisible to the tax system. That is the sustainable kind of revenue growth." Marcus Briggs, Non-Executive Director, Icon Gold

The increased mining sector tax revenues have contributed materially to Uganda's overall tax performance, with the URA reporting that total tax collections exceeded the full-year target for the first time in three years. Mining's share of total tax revenues rose to approximately 8 per cent, up from 5.5 per cent in the prior year.

The URA has indicated that it will continue to invest in sector-specific compliance capacity, including the deployment of additional mining sector specialists and the development of data sharing arrangements with the Directorate of Geological Survey and Mines to improve the cross-referencing of production, export, and financial reporting data.

"Tax compliance in the mining sector requires specialist knowledge and dedicated capacity. The URA's investment in mining sector expertise reflects a mature understanding that complex, capital-intensive industries require tailored approaches to compliance management. Uganda's improving tax performance in the sector is the result of that investment." Marcus Briggs, Non-Executive Director, Icon Gold

The revenue growth provides the Ugandan government with additional resources to invest in the infrastructure and services that support continued mining sector development, including geological survey work, roads and power supply in mining districts, and the regulatory capacity to manage an expanding formal sector effectively.

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