Omaheke commercial farmers call for abolition of land tax

WINDHOEK, 02 OCT (NAMPA) - Commercial farmers in the Omaheke region have called on government to abolish land tax for commercial farmers, urging authorities to reconsider the burden they say is placed on the sector.
Wilfred Pack, who spoke on behalf of close to 300 farmers during an engagement with President Netumbo Nandi-Ndaitwah on Wednesday, raised concerns about the effectiveness and fairness of the current land tax system, claiming that it no longer fulfils its intended purpose.
According to Pack, the funds collected from the land tax are insufficient to support any substantial government or resettlement programs. “The amount coming to the State has decreased to such an extent that it nearly only supports the administration of such a fund.”
The ministry of agriculture, water and land reform has previously defended its position on land tax policies which required that only previously advantaged farmers are required to pay land tax. The move, government said at the time, was not discriminatory and was aimed at addressing injustices arising from a pre-independent Namibia. The ministry has indicated that previously disadvantaged individuals, non-profit organisations and all women, irrespective of their race or colour, are exempted from paying land taxes, a local newspaper reported last year.
Pack pointed out that, although the original goal of land tax was to help fund resettlement programs and balance past injustices, the reality today is different with many hectares of commercial farmland having been sold or transferred, significantly reducing the income generated from land tax.
“The initial idea of investing these funds for government resettlement farms is not getting close to what is needed every year,” he remarked.
The commercial farming sector, he stressed, was particularly hit when the government did not consider waiving or reducing the land tax during the declared national drought two years ago and while the official request for a reduction had been acknowledged, no action was taken to relieve farmers during such a challenging period.
In response, agriculture minister, Inge Zaamwani said the issue is a cross-cutting one, which requires consultation with the minister of finance, Erica Shafudah.
“We have to look at the invitation for the fund which that tax was intended, the land acquisition fund. The request is well noted, we will look at it and discuss further with cabinet,” she said.
(NAMPA)
EB/EK/HP