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11:44Last update on: 13 Aug 2013
The Namibian
Tue 13 Aug 2013


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Land valuations increased up to 987% - NAU
STAFF REPORTER
THE Executive Council of the Namibia Agricultural Union says there is a lot of conformity between the land valuations and the agro ecological zones but certain ways through which final valuations have been reached remain questionable.
The Executive Council of the NAU recently scrutinised the Provisional Valuation Rolls which were released in July this year.
“When analysing the Valuation Roll it is clear that the Ministry of Lands and Resettlement gave a lot of attention to correspond the land valuation with the carrying capacity and the agro ecological zones in Namibia,” NAU said in a statement.
However, the NAU said land valuations do not reflect the real situation on the ground.
“Even though there is a similarity with the carrying capacity and agro ecological zones, it is unexplainable how the valuation of agricultural land with a carrying capacity of 1:18 large stock units is the same as agricultural land with a carrying capacity of 1:8. An example of this is the valuation in the Aroab vicinity at N$550/ha and the one in the high carrying capacity area of Otavi with N$570/ha,” NAU said.
Accordiong to the NAU analysis the valuations have increased between 120% and 987% since 2007.
“The Executive Council came to the conclusion that there is an inherent lack in the model of valuation as it is currently reflected in the regulations. The fact that the current model is based on the purchase value of land creates a serious problem and is for the purpose of valuation of agricultural land most probably not suitable,” it said.
The NAU argues that the ability of agricultural land to generate money to pay tax would be more suitable and should the production value of land be used as basis for the determination of land tax.
“The drastic increase in land values and the coupled high land tax, however, will force the commercial agricultural sector onto its knees with a negative effect on the agricultural economy and employment creation in the agricultural sector. Against the background of the current drought and the re-building of a herd after the drought which could take as long as five years, many land owners will simply not be able to fend for themselves,” the NAU said.
The commercial farmers said they will appeal to Government to re-consider the rate of 0,75% on which land is taxed and adjust it downwards to an affordable rate.
The NAU said they are preparing a document for discussion with the Ministry of Lands and Resettlement, the Ministry of Agriculture, Water and Forestry and the Ministry of Finance.
THE Executive Council of the Namibia Agricultural Union says there is a lot of conformity between the land valuations and the agro ecological zones but certain ways through which final valuations have been reached remain questionable.
The Executive Council of the NAU recently scrutinised the Provisional Valuation Rolls which were released in July this year.
“When analysing the Valuation Roll it is clear that the Ministry of Lands and Resettlement gave a lot of attention to correspond the land valuation with the carrying capacity and the agro ecological zones in Namibia,” NAU said in a statement.
However, the NAU said land valuations do not reflect the real situation on the ground.
“Even though there is a similarity with the carrying capacity and agro ecological zones, it is unexplainable how the valuation of agricultural land with a carrying capacity of 1:18 large stock units is the same as agricultural land with a carrying capacity of 1:8. An example of this is the valuation in the Aroab vicinity at N$550/ha and the one in the high carrying capacity area of Otavi with N$570/ha,” NAU said.
Accordiong to the NAU analysis the valuations have increased between 120% and 987% since 2007.
“The Executive Council came to the conclusion that there is an inherent lack in the model of valuation as it is currently reflected in the regulations. The fact that the current model is based on the purchase value of land creates a serious problem and is for the purpose of valuation of agricultural land most probably not suitable,” it said.
The NAU argues that the ability of agricultural land to generate money to pay tax would be more suitable and should the production value of land be used as basis for the determination of land tax.
“The drastic increase in land values and the coupled high land tax, however, will force the commercial agricultural sector onto its knees with a negative effect on the agricultural economy and employment creation in the agricultural sector. Against the background of the current drought and the re-building of a herd after the drought which could take as long as five years, many land owners will simply not be able to fend for themselves,” the NAU said.
The commercial farmers said they will appeal to Government to re-consider the rate of 0,75% on which land is taxed and adjust it downwards to an affordable rate.
The NAU said they are preparing a document for discussion with the Ministry of Lands and Resettlement, the Ministry of Agriculture, Water and Forestry and the Ministry of Finance.
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