Law Regulating Taxation of State Agricultural Land May Impact HLP Rights
Law No. 4 of 2024, issued in February, lifts penalties and interests accrued since 2012 on unpaid fees related to agricultural reclamation, irrigation, occupancy, and utilisation of state properties, provided that the fees are paid within a year.
Firstly, Law No. 4 exempts those liable for agricultural land reclamation payments from penalties for delayed payment and the associated interest. According to the Agricultural Land Reclamation Law No. 29 of 2012, reclamation comprises activities aimed at preparing the land for cultivation, including irrigation, with the objective of enhancing the land’s agricultural productivity and economic value. These activities include constructing irrigation channels, developing agricultural roads, and removing stones to make the land suitable for plowing. The decision for land reclamation is made by the Minister of Water Resources in consultation with the Minister of Agriculture and Agrarian Reform, after seeking the opinions of the General Union of Farmers and the executive office of the concerned governorate. The decision includes a declaration of public benefit in reclaiming the land in question. The law does not require landowners’ consent for reclamation decisions, nor does it grant them the right to object.
The landowner or beneficiary of the reclamation process is required to pay the reclamation costs annually for 30 years. Those owning reclaimed land must adhere to the agricultural plan and are prohibited from constructing buildings on it that do not comply with relevant laws. The Ministry of Water Resources is responsible for notifying the Ministry of Finance about the beneficiaries of reclamation and the instalments due, which the latter will collect. The law prohibits any transfer of ownership of these properties before the reclamation costs, as determined by the Prime Minister’s decision, are paid. Therefore, a compulsory insurance marker is placed on the Land Records of these properties to prevent transactions involving them, which can only be removed after the due amounts are paid.
Secondly, Law No. 4 exempts those liable for irrigation fees from penalties for delayed payment and the associated interest. The Ministry of Water Resources imposes irrigation fees on owners and occupants of agricultural land in exchange for access to water from government irrigation projects. According to the Agricultural Land Reclamation Law No. 29 of 2012, farmers are charged an annual fee for each hectare of their land irrigated with water from government irrigation projects. This fee is paid in return for the cost of securing water for their land, and the operating and maintenance expenses necessary for irrigation and drainage facilities. The Prime Minister, based on a proposal from the Minister of Irrigation, determines the fee amount. In cases where water is used for non-agricultural purposes, the fee is determined based on the volume of water used, measured in cubic metres.
Thirdly, Law No. 4 of 2024 exempts occupants of state properties, under lease, investment contracts, or equivalent rent, from penalties and interest due on delays in paying occupancy fees. Occupants of private or public state properties, under such contract terms, pay an annual occupancy fee to the Directorate of State Properties and Agrarian Reform, which is part of the Ministry of Agriculture and Agrarian Reform.
Individuals extorting, without any proper justification, agricultural land belonging to the state can submit a settlement request to the Directorate of State Properties in the relevant governorate. Then, the Directorate imposes what is known as “equivalent rent” after creating an official report that acts as a formal lease or investment contract. Equivalent rent is the rental value of a similar property in the same area, assuming it was leased or invested in officially. In some cases, the Directorate may impose double the equivalent rent as compensation for missed rents due to the unauthorised extortion of the property. Double the equivalent rent may also be imposed if the property includes a structure, such as a dwelling or a well, among others.
To regularise the extortion of a property belonging to the state, the occupier must be a Syrian farmer, at least 18 years of age. If they already own or rent other agricultural land, they must demonstrate that their occupation of the new property will not increase the total area of land they benefit from beyond what is called the utilisation ceiling. The utilisation ceiling varies by region and whether the land is irrigated or rain-fed, ranging from three to 20 hectares. The occupier must be a resident of the village or live there permanently, not be a state employee, and be free of any outstanding dues for equivalent rent and its double. In the event of the occupier’s death, the same property can be leased to their heirs.
There is concern that Law No. 4 may entrench the current status of occupants (and the unsettled extortion by unauthorised occupiers) of state properties, who have replaced the absent occupants, including those displaced or forcibly moved to opposition areas. This could potentially extinguish the absent occupants’ usufruct right over the property. At the same time, new lease and investment contracts (as well as the newly settled equivalent rent) can serve as formal documents proving their occupation and leasing of state properties.
