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Transfer duty amendment act comes into force in march 2020

TUMELO RANNAU

The Minister of Finance and Economic Development (the Minister) Honourable Thapelo Matsheka has finally signed the Transfer Duty Amendment Act after it was passed by parliament in August 2019.

Notable changes include the Transfer Duty (duty) collection being moved from the office of the Registrar of Deeds (Registrar) to the Botswana Unified Revenue Service (BURS). This amendment attempts to optimise tax revenue collection and ensure that the duty is collected by the Revenue Authority.

This is a step in the right direction as there has been complaints in the past in relation to levies that are administered by different departments or ministries. BURS should ensure that they have capacity to administer this and that there are measures in place to ensure smooth transition and clients are adequately assisted.

Another administrative issue is the issuance of an exemption certificate to buyers of land where they are involved in a transaction that is exempted from Transfer Duty in terms of the Transfer Duty Act. For instance, instead of attaching a receipt (indicating proof of payment of the duty to the Commissioner General) to the application for transfer of the immoveable property the exemption certificate shall be attached as indication that the buyer is not subject to payment of the duty.

Buyers of immoveable property have encountered difficulties in the past relating to duty exemption on properties that have been subject to Value Added Tax (VAT), especially zero rated transactions, and this provision will now ease transfer of such property. In efforts to combat the under declaration of property values, a valuation certificate issued by a property valuer registered in accordance with Real Estate Professionals Act is to be submitted to BURS to determine Transfer Duty payable.

This is to ensure that buyers do not evade tax by providing the Commissioner General with low values and paying no or less transfer duty. The Commissioner General will also be empowered to either accept the declaration made by the purchaser or to determine the market value of such property through independent valuers or such information that may be necessary to determine a market value.  The Commissioner General’s declared value may be subject to objection by the taxpayer and the two may settle for an agreed price within the confines of the Transfer Duty Act.

The exemption list has also been amended to include among others first-time home owners. The amendment as it is will only benefit buyers who acquire their immoveable property from individuals/businesses not registered for VAT or from sale in execution transactions and it is advisable to use that route for one to enjoy the exemption. Notable inclusions that will be beneficial to buyers is the increase of exempted value from P200, 000 to P1, 000, 000.

This means that for any purchase of property less than P1, 000, 000 a buyer will not be subjected to transfer duty and will only pay duty on the excess. Divorcees getting property from distribution of their estate where they were married in community of property will also not be subject to Transfer Duty.

Exemption of duty for surviving spouses and dependants acquiring property from deceased spouses will now apply across all marriage regimes; currently exemption is only enjoyed by spouses who were married in community of property. Currently sale of tribal land is not subject to Transfer Duty and many have been enjoying the exemption through sale of land in places like Tlokweng and Mmopane.

Tribal land will now be included among properties that are chargeable to Transfer Duty from 1st of March. This may be among efforts by the government to increase tax revenue base, among other amendments that will increase the tax base is the increase of rate from 5% to 30% for purchase of property by non-citizens. Currently only purchase of agricultural land by non-citizens was subject to 30% duty.

Another amendment of interest is that a mere registration of a lease or grant of lease/concession from the Land Board will attract payment of transfer duty; this may be targeting high value lands in the Pandamatenga, Chobe and Okavango areas reserved for tourism and agriculture. The provision is less likely to affect individuals granted land for residential purposes as most of their values are likely to be less than P1, 000, 000.

The 12% simple interest will be replaced a by P20, 000 penalty plus additional interest of 1.5% compound interest on unpaid/uncollected duty, these are among efforts by BURS to encourage compliance among acquirers of property.    NB: This was first published on the 17th November 2018 edition and has been edited to include updates made after the bill was passed.

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Export Processing Zones: How to Get SEZA to Sizzle

23rd September 2020
Export Processing Zone (EPZ) factory in Kenya

In 2005, the Business & Economic Advisory Council (BEAC) pitched the idea of the establishment of Special Economic Zones (SEZs) to the Mogae Administration.

It took five years before the SEZ policy was formulated, another five years before the relevant law was enacted, and a full three years before the Special Economic Zones Authority (SEZA) became operational.

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Egypt Bagged Again

23rd September 2020
Samson

… courtesy of infiltration stratagem by Jehovah-Enlil’s clan

With the passing of Joshua’s generation, General Atiku, the promised peace and prosperity of a land flowing with milk and honey disappeared, giving way to chaos and confusion.

Maybe Joshua himself was to blame for this shambolic state of affairs. He had failed to mentor a successor in the manner Moses had mentored him. He had left the nation without a central government or a human head of state but as a confederacy of twelve independent tribes without any unifying force except their Anunnaki gods.

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‘RO, ‘RO ‘RO YOUR ‘BOT

23rd September 2020

If I say the word ‘robot’ to you,  I can guess what would immediately spring to mind –  a cute little Android or animal-like creature with human or pet animal characteristics and a ‘heart’, that is to say to say a battery, of gold, the sort we’ve all seen in various movies and  tv shows.  Think R2D2 or 3CPO in Star Wars, Wall-E in the movie of the same name,  Sonny in I Robot, loveable rogue Bender in Futurama,  Johnny 5 in Short Circuit…

Of course there are the evil ones too, the sort that want to rise up and eliminate us  inferior humans – Roy Batty in Blade Runner, Schwarzenegger’s T-800 in The Terminator,  Box in Logan’s Run,  Police robots in Elysium and  Otomo in Robocop.

And that’s to name but a few.  As a general rule of thumb, the closer the robot is to human form, the more dangerous it is and of course the ultimate threat in any Sci-Fi movie is that the robots will turn the tables and become the masters, not the mechanical slaves.  And whilst we are in reality a long way from robotic domination, there are an increasing number of examples of  robotics in the workplace.

ROBOT BLOODHOUNDS Sometimes by the time that one of us smells something the damage has already begun – the smell of burning rubber or even worse, the smell of deadly gas. Thank goodness for a robot capable of quickly detecting and analyzing a smell from our very own footprint.

A*Library Bot The A*Star (Singapore) developed library bot which when books are equipped with RFID location chips, can scan shelves quickly seeking out-of-place titles.  It manoeuvres with ease around corners, enhances the sorting and searching of books, and can self-navigate the library facility during non-open hours.

DRUG-COMPOUNDING ROBOT Automated medicine distribution system, connected to the hospital prescription system. It’s goal? To manipulate a large variety of objects (i.e.: drug vials, syringes, and IV bags) normally used in the manual process of drugs compounding to facilitate stronger standardisation, create higher levels of patient safety, and lower the risk of hospital staff exposed to toxic substances.

AUTOMOTIVE INDUSTRY ROBOTS Applications include screw-driving, assembling, painting, trimming/cutting, pouring hazardous substances, labelling, welding, handling, quality control applications as well as tasks that require extreme precision,

AGRICULTURAL ROBOTS Ecrobotix, a Swiss technology firm has a solar-controlled ‘bot that not only can identify weeds but thereafter can treat them. Naio Technologies based in southwestern France has developed a robot with the ability to weed, hoe, and assist during harvesting. Energid Technologies has developed a citrus picking system that retrieves one piece of fruit every 2-3 seconds and Spain-based Agrobot has taken the treachery out of strawberry picking. Meanwhile, Blue River Technology has developed the LettuceBot2 that attaches itself to a tractor to thin out lettuce fields as well as prevent herbicide-resistant weeds. And that’s only scratching the finely-tilled soil.

INDUSTRIAL FLOOR SCRUBBERS The Global Automatic Floor Scrubber Machine boasts a 1.6HP motor that offers 113″ water lift, 180 RPM and a coverage rate of 17,000 sq. ft. per hour

These examples all come from the aptly-named site www.willrobotstakemyjob.com    because while these functions are labour-saving and ripe for automation, the increasing use of artificial intelligence in the workplace will undoubtedly lead to increasing reliance on machines and a resulting swathe of human redundancies in a broad spectrum of industries and services.

This process has been greatly boosted by the global pandemic due to a combination of a workforce on furlough, whether by decree or by choice, and the obvious advantages of using virus-free machines – I don’t think computer viruses count!  For example, it was suggested recently that their use might have a beneficial effect in care homes for the elderly, solving short staffing issues and cheering up the old folks with the novelty of having their tea, coffee and medicines delivered by glorified model cars.  It’s a theory, at any rate.

Already, customers at the South-Korean  fast-food chain No Brand Burger can avoid any interaction with a human server during the pandemic.  The chain is using robots to take orders, prepare food and bring meals out to diners.  Customers order and pay via touchscreen, then their request is sent to the kitchen where a cooking machine heats up the buns and patties. When it’s ready, a robot ‘waiter’ brings out their takeout bag.   

‘This is the first time I’ve actually seen such robots, so they are really amazing and fun,’ Shin Hyun Soo, an office worker at No Brand in Seoul for the first time, told the AP. 

Human workers add toppings to the burgers and wrap them up in takeout bags before passing them over to yellow-and-black serving robots, which have been compared to Minions. 

Also in Korea, the Italian restaurant chain Mad for Garlic is using serving robots even for sit-down customers. Using 3D space mapping and other technology, the electronic ‘waiter,’ known as Aglio Kim, navigates between tables with up to five orders.  Mad for Garlic manager Lee Young-ho said kids especially like the robots, which can carry up to 66lbs in their trays.

These catering robots look nothing like their human counterparts – in fact they are nothing more than glorified food trolleys so using our thumb rule from the movies, mankind is safe from imminent takeover but clearly  Korean hospitality sector workers’ jobs are not.

And right there is the dichotomy – replacement by stealth.  Remote-controlled robotic waiters and waitresses don’t need to be paid, they don’t go on strike and they don’t spread disease so it’s a sure bet their army is already on the march.

But there may be more redundancies on the way as well.  Have you noticed how AI designers have an inability to use words of more than one syllable?  So ‘robot’ has become ‘bot’ and ‘android’ simply ‘droid?  Well, guys, if you continue to build machines ultimately smarter than yourselves you ‘rons  may find yourself surplus to requirements too – that’s ‘moron’ to us polysyllabic humans”!

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