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• 
  How govt will earn from oil, gas sector

  What you need to know:

  • Income. Government has provided a number of taxes under the Income Tax Amendment Bill through which Uganda will earn from the oil and Gas sector as a country.  

  Now that the oil development stage has started, it is easier to connect the dots on how the private sector will directly benefit from the resource. 

  A number of contracts have been drawn while hundreds or even thousands of others, are still in the pipeline. 

  However, beyond individual or company level benefits, the question is; how does Uganda, as a country, earn from the oil and gas sector?

  Pamela Natamba is the head of oil and gas division at PricewaterhouseCoopers (PwC). 

  In her assessment, as a country, during the development stage, Uganda will mainly earn through taxes, given that there will be no commercial production until 2025. 

  READ: Tax exemptions under oil, gas sector

  Therefore, she notes, such earnings have been provided for in the Income Tax Amendment Bill, which particularly focuses on the oil and gas sector. 

  “That Bill has made specific provisions, but one of them which is very interesting is it introduces a Windfall Tax,” she says and notes that this tax will apply to licensees that have signed Petroleum Sharing Agreements, many of which have been involved in exploration up to the point of production. 

  READ: Making sense of oil contracts

  These, she says, include large companies such as TotalEnergies, CNOOC and Uganda National Oil Company (UNOC), among others. 

  What the Bill puts in place, Natamba says, is that as long as you earn revenue in excess of a certain amount, you will be subjected to a Windfall Tax. 

  For instance, she explains, if international oil prices are expected to go for a certain amount you a company sells beyond what has been projected, the expectation is, the company will pay an extra tax over and above 30 percent. 

   

• 
  EAC governments raise taxes to curb gambling addiction

  Kampala. East African governments have renewed efforts to bring the betting industry under strict control amid claims of tax evasion and fears of a growing gambling culture and addition among the youth, who are mostly unemployed.
  Kenya and Uganda have moved to vet industry players with threats of revocation of licences to tame the proliferation of betting, gaming and gambling outlets.
  Despite imposing a punitive tax regimes, restricting the importation of gaming devices and impounding and burning gambling machines, the sector has continued to record growth.
  Uganda levies a 35 per cent tax on betting, while in Kenya, the same was reduced to 15 per cent after lobbying by sector players.
  While both countries have resorted to drastic measures to contain a sector that has largely become a social and economic menace, Tanzania enacted a strong regulatory framework through the Gaming Act, 2003.
  In the 2017/18 financial year, Tanzania collected $36 million from gaming and betting.
  But religious leaders recently lobbied President John Magufuli to ban betting altogether to control addiction among the youth.

  Suspension
  Just this week, Kenya announced that licences for all betting agencies stand suspended as from July 1, and that their renewal will be subject to proof that the companies are tax compliant.
  President Museveni recently directed the Ministry of Finance to stop licencing sports betting, gaming and gambling companies due to the negative effects the industry is having on the youth.

  Growing numbers 
  A recent GeoPoll rapid survey carried out among youth between the ages of 17 and35 in Kenya, Uganda, Tanzania, Ghana, Nigeria and South Africa show that millennials in sub-Saharan Africa spend $50 monthly on betting through their mobile phones.

  Source: Daily Monitor

• 
  REGIONAL LEGISLATORS PUSH FOR DISASTER PREPAREDNESS IN LIGHT OF CLIMATE CHANGE

  REGIONAL LEGISLATORS PUSH FOR DISASTER PREPAREDNESS IN LIGHT OF CLIMATE CHANGE
  
  

  .....House adopts Report on Regional Parliamentarians Policy Workshop on Climate Change and Gender

   

  East African Legislative Assembly, Kampala, August 27 2015: A key policy report on Climate change and gender is calling on Partner States to promote pro-active approaches through adequate preparedness and appropriate strategies in light of climate change.

   

  The Report which follows a regional Parliamentary workshop held in Burundian Capital, Bujumbura in March 2015 was this afternoon debated and approved by EALA.  The Report was presented by the Chairperson of the Agriculture, Tourism and Natural Resources Committee, Hon Christophe Bazivamo.

  The Report says that approaches such as early warning systems and modalities for flood and drought management need to be inculcated.  Closely related to this aspect is the need for the Partner States and the East African Community to advocate for strong institutional and governance structures.

  In addition, the Assembly is of the view that the Secretariat invests in climate/disaster focused research and tools Participatory Capacity and Vulnerability Analysis (PCVA) to boost the preparedness of the region.

  The objectives of the workshop was to create awareness amongst Members of EALA on the critical cross-cutting subjects of climate change and gender; and to consider existing international and regional policies, strategies and regulatory instruments and frameworks on climate change and gender. At the same time, the workshop sought to identify the role of Parliamentarians in implementation of Gender Sensitive Climate Change Policies and Practical measures.

   

  In the past, EALA has passed several environmental Bills including Transboundary Ecosystems Management Bill (2010), the EAC Polythene Material Control Bill, 2014. The EAC Disaster Risk Reduction and management Control Bill (2014) is under consultation.  Work has also commenced on the EAC Climate Change Bill and a Climate Change Fund.

  During debate today, Hon Abdullah Mwinyi called for demarcation of specific areas for cattle keepers so that enough fodder is realized and sustainability is realised. 

  We need a recommendation to that effect from the report such that it adds to the dimension of Climate Change and Gender.  "Farmers are predominantly women while cattle keepers are pre-dominantly men", he said.  "There is need for a region-wide policy to deal with any imminent clashes that may arise", he added.

  Hon Mumbi Ngaru said natural and man-made events both contribute to Climate Change.  "We have the Disaster Risk Reduction Bill pending before the House. It needs to brought forth immediately by the Council of Ministers", she said.

  Hon Susan Nakawuki lauded the city Council of Arusha for greening the City by planting more trees.  We should all borrow from the successes of the City.

   

  She called on the Partner States to ensure the EAC Climate Change Fund received funding.

   

  Hon Valerie Nyirahabineza said the Assembly could champion the importance of the Climate Change Fund.  "As an Assembly, we can support the Fund in a symbolic manner", she said.

   

  Hon Dora Byamukama, Hon Dr. Odette Nyiramilimo and Hon Sarah Bonaya also supported the Report.

  -ENDS-

  Source: EAC Press