Mugabe refuses to sign Biti Bill

Zanu-PF leader, President Robert Mugabe has refused to sign an Incomes Tax Bill that was sponsored by former Finance minister Tendai Biti, sending it back to the House of Assembly.

Mugabe received the Bill in November but refused to sign it citing a number of reasons despite the Bill having been passed by mostly MDC-T MPs while Zanu PF stayed away from Parliament in June.

Jacob Mudenda Speaker of the National Assembly said on Thursday: "I wish to inform the House that His Excellency the president informed Parliament on December 4 that he did not assent to the Incomes Tax Bill owing to reservations on some issues."

"The first reason is taxation of insurance and pensions, shift from source basis to residence basis of taxation, impact of limiting allowable expenditure for business, repeal of the capital gains tax and taxation of capital amounts, softening of the penalty regime, synchronising the new Act with the Finance Act, natural resources taxation particularly as this relates to the mining sector, and various administrative processes and procedures that require review and development to support the implementation of the new Act."

According to section 131 (7) of the Constitution, when the president refers a Bill back to Parliament, the Speaker should convene a sitting of the National Assembly without delay so that they reconsider the Bill.

Alternatively the House can pass the Bill with or without amendments by a two-thirds majority of its total membership.

It is now unlikely that the House will pass the Bill without accommodating Mugabe's reservations as Zanu PF now enjoys more than two-thirds majority. The Bill will be reconsidered when the House resumes sitting in January. Meanwhile, committee business is set to resume on January 13 to meet different ministries and conduct post-budget reviews.