Commercial farmers in Namibia's Omaheke region have launched a significant policy challenge, calling on the government to abolish land tax for commercial farmers, citing diminishing returns and questionable effectiveness of the current system.
Farmers Challenge Current Land Tax Framework
During a crucial meeting with President Netumbo Nandi-Ndaitwah on Wednesday, Wilfred Pack, representing approximately 300 farmers, highlighted the declining utility of the land tax system. Similar to challenges faced in Windhoek's recent development initiatives, the agricultural sector is seeking major policy reforms.
Economic Impact and Policy Implications
Pack emphasized that current tax revenues barely cover administrative costs, drawing parallels to other regional policy debates affecting economic development. The ministry's previous stance on land tax policies required only previously advantaged farmers to pay, while exempting previously disadvantaged individuals, non-profit organizations, and women regardless of race.
"The initial idea of investing these funds for government resettlement farms is not getting close to what is needed every year," Pack stated.
Drought Response and Government Position
The farming sector's frustration intensified when, similar to challenges faced in other African nations managing resource allocation, the government did not consider tax relief during the declared national drought two years ago.
Government Response and Next Steps
Agriculture Minister Inge Zaamwani acknowledged the complexity of the issue, indicating that consultations with Finance Minister Erica Shafudah would be necessary. The government has committed to reviewing the land acquisition fund's objectives and discussing the matter further in cabinet.