The Democratic Republic of Congo’s parliament is debating an oil code that may impose a 40 percent capital gains tax, allow drilling in national parks, and force current title holders to renegotiate their deals.
The code will create a new legal framework for the country’s nascent oil industry and replace 1980s-era legislation governing hydrocarbons, according to a copy of the draft law obtained by Bloomberg from members of the National Assembly. Existing permits that were legally acquired “remain valid and are renegotiated in the 36 months from the date the law is enacted,” the draft says. Congo’s president will retain the right to approve all permits, according to the proposals.
