Wednesday, February 26, 2003

2% Land tax implemented in Free State municipal area
"The average farmer will have to pay R30 000 in land tax per year. Farmers in the Nketoane municipal area in the eastern Free State are angry about what they call the unfair implementation of land tax in the area. The municipality seems to be the only one in the country, which has imposed a 2% land tax. The new Legislation on Property Tariffs will only be implemented in July next year.

"The Nketoane local authority consists of 320 farms, translating into a land tax of R9 million per year. The average farmer will have to pay R30 000 per year. This is above levies that also have to be paid to district municipalities. Farmers are up in arms. "It is inhuman to think that both levies and land tax need to be paid. The land tax is almost 20 times more than the levies. It is ridiculous," says Borrie Erasmus, the spokesperson for the Local Government Free State Agriculture."

The media always reports the essential reform of the land tax in a negative fashion. And at the same time you can never find an economist to explain and defend the system. And that is because the economics profession is bought and sold by the rent-taking class a long time ago, just as the US media and Congress are bought by corporations long ago.

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