News / National
Zimbabwe announces farm rental prices
22 Jun 2015 at 07:00hrs | Views
LANDS and Rural Resettlement Minister Douglas Mombeshora has announced land rental prices that will see both A1 and A2 farmers paying rentals and unit tax.
The minister said all land that has been acquired for agriculture by the state could only be utilised or owned through an offer letter, lease or permit. He told Parliament last week that permits are issued to A1 farmers and offer letters and leases are issued to A2 farmers, but those who hold title deeds are not affected by this new policy.
"Land rentals are going to be charged separately and at different rates for A2 and A1 farmers. For A1 farmers, the land rentals will be charged at a rate of $10 per annum. It's a flat fee. The unit tax is $5 per annum. Therefore, the total amount required for both land rentals and unit tax would be $15 per annum per household," Mombeshora said.
"For the A2 model, the land rentals will be charged per hectare at the rate of $3 per hectare per annum and the unit tax will be $2 per hectare per annum. When you combine the unit tax and the land rental, it will be a total of $5 per hectare per annum. These have got different sizes and you pay according to the size of land that you will be utilising. Communal land will not be charged land rentals. Those are exempted."
Mombeshora had last year indicated that the government was set to introduce rentals for farming to generate income that would be partially used in the land audit.
He said unit tax was already being charged by the Ministry of Local Government, Public Works and National Housing and what has only changed is that his ministry would be collecting unit tax on behalf of the Local Government Ministry.
"We're saying it's not fair that I use land that belongs to the State for free yet somebody who requires that land doesn't have access to that land, is also not having anything to use and is the same with someone who is using that land," said Mombeshora.
On compensation for white farmers, he said it was government policy that all acquired land would be compensated for improvements made on the land only.
The minister said all land that has been acquired for agriculture by the state could only be utilised or owned through an offer letter, lease or permit. He told Parliament last week that permits are issued to A1 farmers and offer letters and leases are issued to A2 farmers, but those who hold title deeds are not affected by this new policy.
"Land rentals are going to be charged separately and at different rates for A2 and A1 farmers. For A1 farmers, the land rentals will be charged at a rate of $10 per annum. It's a flat fee. The unit tax is $5 per annum. Therefore, the total amount required for both land rentals and unit tax would be $15 per annum per household," Mombeshora said.
"For the A2 model, the land rentals will be charged per hectare at the rate of $3 per hectare per annum and the unit tax will be $2 per hectare per annum. When you combine the unit tax and the land rental, it will be a total of $5 per hectare per annum. These have got different sizes and you pay according to the size of land that you will be utilising. Communal land will not be charged land rentals. Those are exempted."
Mombeshora had last year indicated that the government was set to introduce rentals for farming to generate income that would be partially used in the land audit.
He said unit tax was already being charged by the Ministry of Local Government, Public Works and National Housing and what has only changed is that his ministry would be collecting unit tax on behalf of the Local Government Ministry.
"We're saying it's not fair that I use land that belongs to the State for free yet somebody who requires that land doesn't have access to that land, is also not having anything to use and is the same with someone who is using that land," said Mombeshora.
On compensation for white farmers, he said it was government policy that all acquired land would be compensated for improvements made on the land only.
Source - chronicle
