Decision on introduction of new land taxes postponed until December
Taking into account our organization's objection, the government decided today, January 23, not to forward for further consideration in the Saeima amendments to the Law "On Land Privatization in Rural Areas", which provides for the introduction of two new land taxes.
The government decided to postpone consideration of this issue until December of this year, given that there are still several uncertainties regarding the amendments.
An agricultural policy expert represented and spoke at the Cabinet meeting of the "Farmers' Assembly". Martin Throne and admitted: "We definitely insist that farmers should not be subject to two new fees. Currently, if a farmer wants to purchase agricultural land, he already has to make three different types of payments - there is a 2% state fee from the purchase value for registering the property in the land register, as well as we have to pay the land register fee and another payment. This would have been the fourth payment, not to mention the payments that a farmer has to pay when buying land through a notary.
The requirement to pay 14 euros for registering an agricultural land lease agreement with the municipality is disproportionate, considering the small amount of this work. "We don't think it should cost 14 euros, especially considering that farmers have been experiencing a sharp increase in real estate taxes in recent years. Revenue from real estate taxes can be directed, for example, to performing these functions," Martin Throne.
We remind you that on January 10, we sent a letter to Prime Minister Māris Kučinskis and Minister of Agriculture Jānis Dūklavas, indicating that the introduction of the relevant fees would be a new financial burden in cases of leasing and purchasing agricultural land in addition to the existing tax and fee payments.
The Ministry of Agriculture, taking into account the information provided by the Latvian Association of Local Governments, provided the following amounts of state fees:
– for making a decision to acquire agricultural land – 64.00 Euros;
– for registration of agricultural land lease agreements in the municipality – 14.00 Euros.