Land Sale Regulation Grants the Minister Power to Set Minimum Tax

The Ministry of Housing and Infrastructure, on 15 August 2017, published the 2nd Amendment to the “Regulation on Privatising and the Sale and Purchase of Land 2008” which changes the composition of the committee created under Section 10 and, allows the Minister to determine the minimum sale price for tax purposes.

The amendment to Section 10(a) of the Regulation changes the composition of the valuation committee to 5 technical staff of the Ministry of Housing who are appointed by the Minister. Prior to this amendment, the committee was composed of both public and private persons and the price was determined by this committee. However, the amended Section 10(a) grants the Minister, the power to determine the amount payable to the State upon the advice of the committee.

The amendment to Section 10(d) allows the Minister to determine the minimum sale price to be used for the calculation of tax. This amendment also allows the Minister to bring any changes to that price upon the advice of the committee created under Section 10(a). Prior to this, Section 10(d) granted the committee, the power to determine the minimum sale price of  land under the Regulation.

Finally, Section 11 of the Regulation has been amended to the effect that, the Minister can, based on the factors under Section 11, differentiate on determining the minimum price to be paid for privatising land and the minimum price for the calculation of tax.