Online Reporter
IN a strategic move to boost official gold deliveries and curb smuggling, the Government has officially exempted the supply of gold to licensed refineries from value-added tax (VAT).
The policy shift was announced in Statutory Instrument 175 of 2026, titled the Value Added Tax (General) (Amendment) Regulations, 2026 (No. 80), published in a Government Gazette today.
The VAT relief is deemed to have come into effective operation on January 1 this year.
Boosting formal mining channels
The regulatory adjustment is expected to streamline financial transactions within the precious metals sector.
Prior tax structures created friction for producers supplying local refineries, occasionally incentivising sales through informal or offshore channels where tax burdens could be minimised.
By effectively zero-rating or exempting VAT on gold delivered to licensed refineries, the Government aims to ensure licensed domestic refineries remain competitive against informal buyers and foreign processing hubs.
This would also encourage both large-scale commercial miners and artisanal small-scale miners to direct their output into official supply chains.
It is also believed that backdating the regulation to January 1 gives immediate financial certainty to mining houses and refineries for their 2026 operations, clearing up potential back-tax liabilities or refund claims accumulated earlier in the year.
