Land tax a step closer

THE implementation of land tax in Namibia has taken probably the final step towards reality after the Valuation Court this week started hearing objections to the first-ever Provisional Valuation Roll.

The roll contains data on all commercial farms in Namibia and will be used to determine how much each farm owner will pay to the tax man as soon as it has been approved by the court. The Katutura Magistrates Court, where the Valuation Court has been sitting since Monday, is a hive of activity with grim-faced farmers filing in to argue their cases before Magistrate Lea Shaanika.”Your honour, I am not objecting to the valuation, what we need to know is the methodology used to categorise the farms and in determining the different [tax] rates for different farms,” stated one farmer in court.Another one added: “It would be grossly unfair to expect us to come with arguments to qualify our objections without information about the basis on which the valuation was done …It’s an infringement on the rights of the people.”Magistrate Shaanika constantly reminded farmers to desist from generalising their concerns as that would mean lobbying, “we are not in a public meeting, this is a Valuation Court and a ruling has to be made at the end of the day”.In her application to the court to endorse the Provisional Valuation Roll, the Appointed Valuer, Dr Nashilongo Shivute, said that about 2 200 people had inspected the roll and a total of 244 objections were received since the roll was opened for inspection in September.Most objections ranged from non-valuation issues such as the legal size of the farm, consolidation and bush encroachment to other issues which the farmers felt should have been considered in the valuation, such as farm carrying capacity and its boundary.One farmer complained that his farm was assessed differently to his neighbours, whilst they were all exposed to the same conditions.Apart from what they viewed as huge discrepancies in the valuations, farmers also wanted to know why the valuers used “mass assessment” instead of visiting all farms.But the Appointed Valuer, Dr Shivute, retorted that such an exercise would have been costly as there 12 509 commercial farms in the country.”This means we would need 12 509 days and 12 509 people to assess every farm in the country individually, and such exercise is obviously not cost-effective,” she noted.According to her, the 12 509 commercial farms through out Namibia was owned by only 5 500 people, of which 2 000 own more than one property.The valuation roll was compiled after farmers were required to complete a form issued by the Ministry of Lands, in which they had to disclose the number of farms, the total hectares, the names and nationalities of the owners.Land owned by commercial farmers will be taxed at a rate of 0,75 per cent per hectare, and 1,75 for each hectare owned by absentee landlords.According to Dr Shivute, these rates were set by the National Assembly and the will also be a ‘progressive rate of 0,25 per cent for each additional property.Once implemented the land tax will be backdated to April.Apart from helping Government raise revenue, the proposed land tax is expected to compel farmers to sell their excess land for the resettlement of landless masses.The Valuation Court will sit two weeks.The Katutura Magistrates Court, where the Valuation Court has been sitting since Monday, is a hive of activity with grim-faced farmers filing in to argue their cases before Magistrate Lea Shaanika.”Your honour, I am not objecting to the valuation, what we need to know is the methodology used to categorise the farms and in determining the different [tax] rates for different farms,” stated one farmer in court.Another one added: “It would be grossly unfair to expect us to come with arguments to qualify our objections without information about the basis on which the valuation was done …It’s an infringement on the rights of the people.”Magistrate Shaanika constantly reminded farmers to desist from generalising their concerns as that would mean lobbying, “we are not in a public meeting, this is a Valuation Court and a ruling has to be made at the end of the day”.In her application to the court to endorse the Provisional Valuation Roll, the Appointed Valuer, Dr Nashilongo Shivute, said that about 2 200 people had inspected the roll and a total of 244 objections were received since the roll was opened for inspection in September.Most objections ranged from non-valuation issues such as the legal size of the farm, consolidation and bush encroachment to other issues which the farmers felt should have been considered in the valuation, such as farm carrying capacity and its boundary.One farmer complained that his farm was assessed differently to his neighbours, whilst they were all exposed to the same conditions.Apart from what they viewed as huge discrepancies in the valuations, farmers also wanted to know why the valuers used “mass assessment” instead of visiting all farms.But the Appointed Valuer, Dr Shivute, retorted that such an exercise would have been costly as there 12 509 commercial farms in the country.”This means we would need 12 509 days and 12 509 people to assess every farm in the country individually, and such exercise is obviously not cost-effective,” she noted.According to her, the 12 509 commercial farms through out Namibia was owned by only 5 500 people, of which 2 000 own more than one property.The valuation roll was compiled after farmers were required to complete a form issued by the Ministry of Lands, in which they had to disclose the number of farms, the total hectares, the names and nationalities of the owners.Land owned by commercial farmers will be taxed at a rate of 0,75 per cent per hectare, and 1,75 for each hectare owned by absentee landlords.According to Dr Shivute, these rates were set by the National Assembly and the will also be a ‘progressive rate of 0,25 per cent for each additional property.Once implemented the land tax will be backdated to April.Apart from helping Government raise revenue, the proposed land tax is expected to compel farmers to sell their excess land for the resettlement of landless masses.The Valuation Court will sit two weeks.