By JAMES KUNDA? –
ZAMBIA has dropped four places on the 2015 Ease of Doing Business (EDB) Index compiled by the World Bank Group, owing to the increasing Property Transfer Tax (PTT).
Zambia’s global rank on the EDB now stands at 111 from 107 in 2014 and this is out of 183 competing economies.
The property taxation system was made up of PTT at national level and property rates at local government level and Government had increased PTT from five per cent to 10 per cent in 2014 with the aim of raising at least US$10million.
“The EDB report tracks regulatory reforms aimed at improving the ease of doing business and ranks economies based on trade regulation indicators.
“Zambia is now ranked 111 in 2015 from 107 in 2014, down four places due to transferring property being made more difficult by increasing the property transfer tax rate,” read the EDB posted on the World Bank website yesterday.
The World Bank, however, noted that local credit bureau improved access to credit information by starting to exchange credit information with retailers and utilities.
The organisation reported that Zambia also made starting a business easier by raising the threshold at which Value Added Tax (VAT) registration is required.
