by Vasinatta Yama – EM TV, Port Moresby
After 20 years, the Valuer General Office presented National Capital District Commission with Valuation Roll Update for the next five years.
The roll update is an exercise done by the local authority to collect land rates.
This is then used to provide services such as water and sanitation.
Valuation Roll Update is done on a five year interval. However, with funding constraints, it was never reviewed.
It is a requirement, under the Valuation Act 1967, for an authority like NCDC to review and tax tariffs, and come up with new affordable land tax for land owners or people who have a land title.
The current land tax tariffs are 3.5 % for Commercial, and 2.3% for Residential properties, of the improved capital value.
However, with the current rating, they account a total of unimproved value of K681 million.
NCD has a total of 25,000 registered land plots, only 19,000 are active.
This made them to combine their records with the Lands Department.
NCDC has been using the Valuation Roll Out, back in 1992, for their land rate purposes.
In the past, they offset the loss of low values with higher tariffs.
Now, with the current market value of NCD properties, Governor Powes Parkop assured NCD landowners that the increase is estimated to be significant.
Meanwhile, Parkop said that since NCDC does not get the PSIP funds, their main revenue comes from goods and services tax and the land rate tariffs.
NCDC will be reviewing its current tax tariffs against the new valuation roll, to ensure that land tax is affordable for everyone.
It will be captured in their 2015 amendments and will be effective in 2016.
A similar exercise will also be carried out in Morobe Province.