AfriBusiness opposes new formula for agricultural land valuation

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AfriBusiness is against the proposed property valuation formula in the Property Valuation Bill that will specifically apply to land earmarked for land reform and/or identified for expropriation by government departments. AfriBusiness is currently busy compiling commentary that it will submit to the Department of Rural Development and Land Reform.  

Dr Anthea Jeffery, Head of Policy at the South African Institute of Race Relations, explained the workings of the proposed formula as follows: If a farm has a market value of R1 million and yields an annual net income of R100 000, the formula determines that the sum of these two amounts be divided in two, which will amount to a valuation of R550 000 – half of the true value of the land.

“Gugile Nkwinti, Minister of Rural Development and Land Reform, and his destructive regulations and policies will be largely responsible for the demise of food security and a flourishing agricultural economy. This Bill is but another nail in the coffin of economic growth and the development of the agricultural sector,” says Charles Castle, Manager at AfriBusiness.

Lindiwe Sisulu, Minister of Human Settlements, in the meantime submitted the Property Practitioners Bill, which aims to regulate estate agents to transform the property market, among others.

Other recent bills, policies and proposals that directly threatens property rights include the Regulation of Agricultural Land Holdings Bill, the proposed Land Reform Bill, the proposal of a wealth tax on land and a national tax on the value of property over and above the normal municipal property tax.

With the support of its members AfriBusiness will uninterruptedly fight for the economic prosperity of all South Africans.