The Namibian government has threatened commercial farmers with five years behind bars after most of them failed to complete forms regarded as crucial in the determination of commercial land holding in the country.
The farmers had until the beginning of February to hand in their forms, but only 3 075 of the expected 12 684 were completed and returned to the Ministry of Lands, Resettlement and Rehabilitation.
The ministry placed an advert in local newspapers to express its disappointment over the lack of interest shown by the commercial farmers in filling out the forms which were to form the basis for the publication of the provisional valuation roll of agricultural properties in the country.
It threatened those who failed to comply with a fine of N$20 000 (US $2 400), five years in jail, or even both as stipulated in the land valuation and taxation regulation of December 2001.
The lack of interest has forced the ministry to postpone the publication of the provisional valuation roll of agricultural properties until 28 February.
The forms were available at post offices and at the office of the valuer-general in the capital, Windhoek. But commercial farmers argued that not all of them lived near post offices.
The farmers were required to disclose the number of farms they own, the total hectarage, names and nationalities of the owners. The data will be used to determine the amount of money the farmers will pay under a land tax which will be introduced at the beginning of April this year. The land tax was first announced last April but was not implemented.
The government has proposed a 0,75% tax on each hectare of land owned by commercial farmers, and a one percent tax for each hectare owned by absentee landlords. The move is aimed at compelling farmers to sell excess land to the government for resettlement by landless black Namibians.
Lands minister Hifikepunye Pohamba said through the proposed land taxation, the government would be able to raise revenue of around N$20-million (US $2,4 million) each year.
He said the tax rate for absentee landlords was likely to be pushed up after one year when a re-evaluation of the rates would be done. Pohamba said the tax rate would increase by 0,25% per hectare on each additional farm owned by an individual commercial farmer. Until now, commercial farm land had been exempt from taxation.
When he briefed cabinet on progress made in the implementation of the land tax, Pohamba said the implementation strategy for the land tax required four phases for the creation of a valuation roll of all taxable properties. These phases include the property identification exercise, the creation of the valuation roll, objections and the sitting of the valuation court, and billing and collecting.
In terms of the proposed land tax, farmers will not be taxed on improvements they have made on their farms.
Members of the mainly white Namibian Agricultural Union (NAU) have urged the government to define excessive land and land units. The NAU claims that the 12 684 taxable commercial farming properties include small holdings which were not commercially viable.
The government says that South African and German nationals, for example, own at least 164 farms covering 1,14-million hectares, and many more farms are owned by other foreign citizens in the country.
Since independence in 1990, the government has spent over N$70-million (US $8,4-million) on acquiring in excess of 567 000 hectares of freehold farmland on a “willing seller-willing buyer” basis. About 243 000 communal farmers are still waiting for land. The Namibian government says it needs an additional N$900 million (US $10,8-million) to buy 9,5-million hectares to resettle them.
According to government statistics, about 30,5-million hectares of agricultural land is owned by mainly white farmers, and only 2,2-million hectares by black farmers. Absentee landlords own a further 2,9-million hectares while the state owns 2,3-million hectares.
Over the last 10 years, land prices in Namibia have increased on average by more than 200%, from around N$70 (8,4 US cents) per hectare to over N$300 (US $36) per hectare, limiting the amount of land the government can afford to buy for resettlement. – Irin