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Construction industry levy mooted

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The Construction Industry Authority Botswana (CIAB) Final Layman’s Draft Bill, has proposed to government an industry levy through a draft bill handed to the Minister of Infrastructure, Science and Technology Nonofo Molefhi this week. CIAB says a levy at the rate specified in the regulations shall be payable to the Authority in respect of construction operations carried out in Botswana.

 
The draft bill was drawn up at the advice of government in order for the construction industry to coordinate its development and promote its  contribution (the industry) in meeting national demand.

 

The draft bill says the levy will not apply to construction works carried out for domestic single residences.

 
The bill says construction works, for which the total value does not exceed the amount specified in the regulations, shall not be liable to pay the levy. “This section applies to construction works described in the regulations irrespective of whether the construction operations are carried out for any party in the private sector, or for any party in the public sector or any other party,” CIAB said.

 
The draft bill says the levy will not apply to construction works carried out for domestic single residences as long as it did not exceed the limit in accordance with or for the sole or principal purpose of decorating, altering, refurbishing, repairing, maintaining or renovating any premises which ordinarily would not require the issuing of a building permit by the CIAB.

 
In its requirements for registration, the draft bill states that no person shall undertake construction works where any contract exceeds the value stated in the regulations or as may be specified by amendments to the regulations from time to time, unless he has been registered with the CIAB.

 

Among its functions, CIAB is to provide strategic leadership to construction industry stakeholders to stimulate sustainable growth.

 
CIAB says a person seeking registration under subsection (1) shall be eligible for consideration if he or at least one of the partners or directors of the firm possesses such academic and technical qualifications, skills or experience as the board may from time to time prescribe in the regulations and further, provided that the person adheres to best practices and meets such requirements for registration as may be published in the regulations from time to time, and further provided that the person is not affiliated to any other entity which is already registered with the Authority.

 
“Subject to this Act and the regulations, a person or contractor meeting the requirements referred to in subsection (2) shall be entitled, on making an application to the Board in the prescribed form, and on payment to the Authority of the prescribed fee, to be registered under this Act as a Registered Contractor.”
Among its functions, CIAB is to provide strategic leadership to construction industry stakeholders to stimulate sustainable growth, reform and improvement of the construction industry, and to establish best practices in the industry.

 
CIAB also targets the growth of citizen contractors and citizen manpower development as well as labour absorption in the construction industry.


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