Dust is refusing to settle on the recently passed four land-related bills by Parliament, with Chancellor College Economics Professor, Ben Kalua, saying if approved, the bills will only increase challenges to the private sector which is already saddled with a myriad of taxes.
Government is expecting to enhance domestic resource mobilisation to finance the 2016/2017 national budget and Kalua says taxes that the private sector will be required to pay under the new land bills will only worsen the business environment.
“There is a lot of pressure on the private sector and in the business due to the tax requirements, so the rates would be hard and will make the private sector to suffer. However, no one can say anything definite until we know the particular rates and if they are too primitive, the private sector will surely suffer,” said Kalua.
He, however, said there can also be a positive side to the debate if people can make full use of the provision of the new bill.
According to Kalua, there is room that business operators may use their deeds to their advantage when sourcing funding from commercial banks.
“This bill will make it possible for businesses to tender their land holding as collateral. That lowers barrier to entry and access to banks financing. There is going to be market for land now than ever,” said Kalua.
Last week, amid reservations from the opposition side, Parliament approved the Principal Land Bill, the Customary Land, the Land Survey and the Physical Planning Bills.
Since then, different sections of society have given their input, with most divided over some amendments which will take away powers of chiefs in land acquisition as well as registration of customary land.
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