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Colombo, Dec. 13 (Daily Mirror) - Agriculture Minister Mahinda Amaraweera said yesterday that the government has decided to suspend the collection of the acre levy on agricultural land.
He mentioned this during a discussion with the Development Officers yesterday (12).
The acre levy is a tax charged at the rate of Rs. 100 per acre on agricultural land and collected by the Agrarian Development Department through Development Officers.
The amount is credited to the government's revenue.
However, President Ranil Wickremesinghe said in a Cabinet meeting that there is no need to collect the acre levy, especially since the government has to spend more money to collect it than the income received by charging this tax.
The Minister also said that steps will be taken to completely suspend the acre levy in the future.
Several decades ago, activities such as the issuing of bicycle licenses as well as the radio licences were carried out, but later they were suspended.
However, the revenue lost to the government by charging an acre levy is about one billion rupees.
The Minister also said that the President had said that it is not appropriate to charge this amount from the farmers.