TAXING FOREIGNERS OUT OF THE REAL PROPERTY SECTOR IN BOTSWANA

Abstract

This is a commentary on changes to the law on transfer duty in Botswana brought about by the Transfer Duty (Amendment) Act of 2019.  The most controversial aspect of the law was an increase in the rate of duty to be paid by non-citizens for all types of land to 30 per cent of the purchase price or value of the land, while the rate for citizens remained at 5 per cent. This was complimented by a raft of exemptions which significantly eroded the liability of citizens to pay transfer duty.  This has the intended effect of discouraging acquisition of land by non-citizens, and confounding Botswana’s quest for foreign direct investment. The paper so contends.  It also contends that naked discrimination against non-citizens in taxation matters would not be as easy to justify under the non-discrimination provisions of the Botswana Constitution as some might be tempted to think.