DISCUSSION DOCUMENT ON LAND TAX

Issued by: The Tax Commission

LAND TAX

The Land Tax Sub-Committee dealing with the possible introduction of a land tax at provincial or local government level has released a discussion document which suggests that local government will be entitled to levy a land tax in terms of the final Constitution and that framework legislation will be necessary to ensure that any potential economic disruption is minimised and that the raising of tax revenue is optimised.

The tentative views of the sub-committee on framework legislation include:

• the market value of land and improvements should form the tax base;
• valuations should take place at least every five years;
• the owner of the land should be liable to the tax;
• the tax rate should not exceed 2 per cent per year;
• relief through the use of rebates and deferrals should be kept to a minimum;
• the tax should be levied annually but could be collected at shorter intervals.

Before formulating its final recommendations the sub-committee has called for submissions on the above issues and asked for proposals on how to deal specifically with tribal land.

All submission should be forwarded to:-

The Secretary Tax Commission Private Bag X349 PRETORIA 0001

Faxes can be sent to: (012) 323-2917.

Copies of the document are obtainable from the same address.

The closing date for submissions is 25 October 1996 and limited oral evidence hearings will take place shortly thereafter.

ISSUED BY THE TAX COMMISSION PRETORIA

8 October 1996