Acre Tax Collection
1. Introduction
Under the powers vested in Parliament by Article 148 of the Constitution for imposing taxes, and the power to delegate such authority to another body by law, Pradeshiya Sabhas have been delegated the power to impose and collect a tax on lands subject to regular or permanent cultivation. This tax is known as Acre Tax.
2. Legal Authority
I. Sections 134(3), 141, 158, 160, and 161 of the Pradeshiya Sabha Act No. 15 of 1987.
II. Provisions of the Gazette notifications relevant to Pradeshiya Sabhas, included in the annexure hereto.
3. Eligibility
I. Lands situated within a Pradeshiya Sabha limit that are subject to permanent or regular cultivation.
II. The land must exceed 1 hectare (more than 2 ½ acres).
Note: Assessment Tax cannot be levied on a property on which Acre Tax is levied.
4. Fee
(a) The rate for collecting this tax varies according to the land area. Accordingly, when the land area subject to Acre Tax is between 1 and 5 hectares, a sum not exceeding Rs. 50.00 for each hectare of that land, and
(b) A sum not exceeding Rs. 10.00 for each hectare exceeding five hectares, as determined by the Pradeshiya Sabha.
1. For lands less than five hectares under clause (b) above, a Pradeshiya Sabha shall have the power to impose and collect Acre Tax only if the area belonging to that Pradeshiya Sabha has been declared a special area by the Minister by order published in the Gazette. (A list of Pradeshiya Sabhas declared as special areas is included in the schedule hereto.)
2. An opportunity has been given to obtain a discount when paying the Acre Tax determined by the Pradeshiya Sabha to the Sabha quarterly or annually at once:
(a) A discount of ten percent (10%) if the Acre Tax for the year is paid within the month of January of the relevant year.
(b) A discount of five percent (5%) if the Acre Tax for a quarter is paid within the first month of the relevant quarter.
5. Documents to be Submitted
(a) The assessment notice issued by the Pradeshiya Sabha.
(b) In the absence of an assessment notice, indicating the location of the land (road and address) will help the front office officer identify this information.
6. Procedure
| Procedure Step | Time Period | Authority |
|---|---|---|
| Having assessment notices printed | Before October 31 of each year | Secretary |
| Announcing in the Gazette and newspapers that the Acre Tax list is available for display and that objections regarding the assessment can be submitted | Before October 31 of each year | Chairman |
| Placing the Acre Tax list for public display and keeping the objection register open to the public | From November 01 to January 31 of each year | Secretary |
| Arranging to deliver the assessment notice to the owner or occupant of the property | Before December 31 of each year | Secretary |
| Coming forward to pay the Acre Tax by submitting the assessment notice or providing property details | - | Owner or occupant of the property |
| Identifying the relevant property and notifying the amount of Acre Tax payable | Immediately upon coming forward to pay | Front Office Officer |
| Considering discounts applicable to the agreed amount, collecting the relevant tax amount, and issuing a receipt | Immediately upon receiving the money | Front Office Officer |
| Updating the Acre Tax register |
1. Immediately in the computer software 2. If not possible, within one week from the date of payment |
1. Front Office Officer 2. Subject Officer |
Note: Even if objections have been submitted regarding the land area, the owner or occupant of the land is liable to pay the Acre Tax for the year.
7. Consequences of Non-Payment of Acre Tax
(a) The owner or occupant of any land subject to regular or permanent cultivation is liable to pay the Acre Tax determined by the Pradeshiya Sabha to that Sabha within the time period determined by that institution. If any person fails to pay such Acre Tax within the stipulated time, the Secretary of the Pradeshiya Sabha has the legal authority to issue a distress warrant in the name of an officer of the Sabha or any tax collector to recover such arrears.
(b) When such a warrant is issued by the Secretary, the person who receives such warrant is legally permitted to seize and sell all movable property found on the relevant property belonging to any person, recover the due amount, and deposit it into the Pradeshiya Sabha fund.
(c) There is also authority to recover an amount equal to 10% of the amount due as the fee for issuing a distress warrant to seize such movable property.
(d) Furthermore, the person liable to pay Acre Tax shall also be subject to an additional fee of 10% of the amount due as the fee for seizing movable property.
(e) Furthermore, if there is no movable property that can be seized, legal authority has also been granted to seize and sell the relevant immovable property.