Govt gazettes A1, A2 rental and development levies
GOVERNMENT has finally gazetted the development and rental levies to be paid by resettled A1 and A2 model farmers on a quarterly basis.
According to the Government Gazette published on Friday A1 model farmers will pay US$10 rental and US$5 development levy annually while A2 model farmers will pay US$3 rental per hectare and $2 development levy per hectare per yearly.
However, the cumulative amount payable for each full year will be calculated and divided by four to determine the quarterly payment. Resettled farmers already pay US$1 land tax per hectare to rural district councils.
From the over 300 000 resettled farmers, Government is targeting to raise at least US$5 million every year from the levy for infrastructural development.
The rates are applicable to the A1 model farm held in terms of permits and A2 models farms under the nine-nine year lease land titles.
Areas to which rental and development levies are payable relate to agricultural land acquired by Government under the land reform programme.
“The Minister of Lands shall, through offices of the ministry of lands specially designated by the secretary for the ministry for the purpose, be responsible for collection of the rentals and development levy on behalf of the State,” reads an excerpt from the gazette.
The regulations empower those responsible for the gazetted land to cancel offer letters of holders who fail to pay for three consecutive quarters.
No lessee, holder of a permit in respect of A1 model farms or holder of an offer letter in respect of A2 model farms in arrears of rental or development levies will access public finance support for their farm.
Revenue collected from rentals and development levies shall accrue to Consolidated Revenue Fund, the levy will not be paid in terms of section 96 of the Rural District Councils Act Chapter 29:13.
Proceeds of the development levy will be used to meet the expenditure needs such as gully reclamation, soil conservation, provision and operation of hospitals, clinics, schools and road maintenance. -FinX
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