Agricultural land tax to return in July 2020
EXCLUSIVE- Agricultural land tax coming back into effect in July 2020: The government is preparing to bring back its agricultural land tax from July 2020 following a three-year suspension beginning in 2017, two government officials told Enterprise. The government is currently re-appraising the land that will be subject to the tax, which spans 16 governorates. A total of around 10 mn feddans will be subject to the tax.
Tax to be imposed under one of two categories: According to the sources, the tax will be imposed and collected separately on two types of land. The first is land that has seen its output increase by 30% as a result of irrigation projects. Rent prices on these land plots will be reassessed as part of the appraisal process, and any changes will be implemented as of 1 August 2020. The tax rate will remain unchanged at 14% of the land’s rent value, the sources stressed. The second category is land where there are no irrigation projects. Rent on these plots will remain unchanged, and the tax rate will remain fixed at EGP 200-300 per feddan.