.Simbyakula

By REBECCA MUSHOTA –

CABINET has approved the Mines and Minerals Development Bill that sets the royalty tax at nine per cent for open cast and six per cent for underground mines.
It has also approved the Income Tax 2015 (Amendment) Bill which seeks to implement the proposed changes to the mine tax system.
Acting Chief Government Spokesperson Ngosa Simbyakula told journalists after a Cabinet meeting yesterday that the Bill included increasing corporate tax for mining operations to 30 per cent and increasing the corporate income tax for mineral processing from 30 to 35 per cent.
The other changes in the Income Tax Amendment Bill are the introduction of a variable profit tax of up to 15 per cent for mining operations and limit the deduction of losses for mining operations to 50 per cent of taxable profit for each year.
Dr Simbyakula said the Bill would be introduced to Parliament during the sitting which starts today.
“The Bill further seeks to revise the law relating to exploration, mining and processing of minerals, provide for safety, health and environmental protection in mining operations,” Dr Simbyakula said.
Cabinet also approved the Gold Trade (Repeal) Bill 2015 which repealed the Gold Trade Act Chapter 396 in order to avoid duplicity because issues surrounding gold mining would be handled in the revised Mines and Minerals Development Act of 2015.
During the sitting, Cabinet also agreed the start of the formulation of the Seventh National Development Plan for 2017 to 2021 as the current development plan is coming to an end at the end of next year.
Additionally, Cabinet approved the signing of the Double Taxation Agreement with Netherlands whose purpose is to avoid double taxation and the prevention of fiscal evasion with respect to taxes on income.
Also approved are the Local Authorities Superannuation Fund (Amendment) Bill 2015 and the National Pension Scheme (Amendment) Bill 2015 for presentation to Parliament.
It sought to increase the retirement age to 60 years, providing for early retirement at 55 and late retirement at 65.
The Government would approve seven members to serve on the National Prosecutions Authority Board to replace the board that was dissolved on May 13 this year.
Dr Simbyakula also said the Bill to enact the non-contentious issues in the Constitution would be published next week.