Finance Minister Lilo directs 15 percent export duty on alluvial and gold concentrates, including back-taxing to recover lost revenue
BY DOUGLAS VAHIA
Minister for Finance and Treasury Gordon Darcy Lilo has directed the Customs and Excise Division to immediately apply a 15 percent export duty on alluvial and gold concentrates.
Lilo’s directive locks the mining industry into standard statutory rates rather than discretionary deals which past governments have entertained, allowing individuals in power to benefit and alluvial and gold exporters evading the rightful duties.
In a Ministerial Directive issued yesterday to the Comptroller of Customs and Excise, Mr Lilo instructed the Division to ensure strict compliance with and administration of the Harmonised System (HS) 2022 tariff rates, a statement by the Government Communication Unit (GCU) yesterday said.
“I write to direct your office to comply with and strictly apply the Harmonised System (HS) 2022 tariff rates in accordance with international classification standards and the Customs and Excise Act and its associated regulations,” Lilo said.
The HS2022 framework provides updated tariff schedules that ensure consistency with global trade practices and compliance with World Customs Organisation (WCO) requirements, GCU said.
Lilo’s action is closing the loophole in the alluvial and gold panning operations which have been a controversial part to the mining industry, often under-reported and allegations of tax avoidance.
Lilo said Customs officers must apply these rates uniformly across all import and export transactions to safeguard Government revenue, enhance transparency, and facilitate trade.
The Directive confirms that the 15 percent export duty on alluvial and gold concentrates under HS2022 will apply with immediate effect.
The ministerial directive also supersedes any previous directives issued on the export of alluvial and gold concentrates.
Furthermore, the Finance Minister directed that since the gazetting of HS2022, any exports of alluvial and gold concentrates made thereafter should have been paid at the rates provided in the schedule.
Forcing the 15 percent rate via the HS 2022 ledger ensures the country captures a fair fiscal return on its non-renewable mineral resources before they leave national borders.
Lilo further directed Customs and Excise to retrospectively recover the revenue from the date of gazetting of HS2022.
The Ministry of Finance and Treasury will work closely with the Customs and Excise Division to ensure full implementation and compliance, the GCU statement said.
Photo credit: GCU
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