Section 28: Land conversion and payment of land conversion tax

28. Land conversion and payment of land conversion tax (1) Notwithstanding any other enactment, but subject to the other provisions of this section, no person shall put any agricultural land to non-agricultural use except— (a) with the prior written authority of the Minister; [Issue 9] S49 – 26 Revised Laws of Mauritius (b) on payment to the Registrar-General of the land conversion tax specified in the Twelfth Schedule; and (c) in the case of a non-citizen, on production of a certificate issued under section 3 (2) of the Non-Citizens (Property Restriction) Act. (1A) (a) Payment of the land conversion tax payable under subsection (1) (b) may be effected in 4 consecutive equal 6-monthly installments, provided that, at the time the written authority of the Minister under subsection (1) (a) is granted— (i) the first instalment is made; and (ii) (A) a bank guarantee for the remaining 3 instalments is furnished to the Registrar-General; or (B) a written request from the owner of the land, authorising the Receiver of Registration Dues under the Registration Duty Act to inscribe a privilege on his land for the remaining 3 other instalments, is produced. (b) Where a written request is made under paragraph (a) (ii) (B), the Receiver of Registration Dues shall inscribe a privilege on the land referred to in the request. (c) Where payment of the land conversion tax is effected by instalments referred to in paragraph (a), it shall carry interest at 3 per cent per annum above the repo rate. (2) Subsection (1) shall apply to any agricultural land, whether forming part of a larger plot of land or not, which has been under cultivation at any point in time during the past 10 years immediately preceding the effective date of an application under subsection (3). (2A) Where the owner of a plot of land intends to put that plot of land to non-agricultural use and such plot of land has not been under cultivation at any point in time during the past 10 years, the owner may make a declaration to that effect to the Ministry in such form as the Minister may determine. (2B) On the basis of the declaration made under subsection (2A), the Ministry shall, within 2 weeks of the date of the declaration, confirm in writing the status of the land. (3) (a) The owner of any agricultural land who intends to put that land to non-agricultural use shall apply in writing to the Minister, in such form as the Minister may approve, for authorisation to do so and shall provide such information and documents as may be specified in the form to enable him to determine the application. (b) An applicant shall not be required to submit more than one original copy of the application and documents. (3A) (a) An application under subsection (3) shall be made in accordance with the guidelines, in terms of the requirements and application with the law and the procedures to be adopted, issued by the Ministry. S49 – 27 [Issue 9] Sugar Industry Efficiency Act (b) The original of the application, together with the required documents, shall be forwarded to the supervising officer of the Ministry who shall cause a scanned copy of the application and documents to be forwarded electronically to the Secretary to the committee. (c) The Secretary to the committee shall, on receipt of the application, forthwith examine the application and shall, where the application is— (i) complete and in accordance with the guidelines, give, within 3 working days of the date of receipt of the application, written notice th the required documents, shall be forwarded to the supervising officer of the Ministry who shall cause a scanned copy of the application and documents to be forwarded electronically to the Secretary to the committee. (c) The Secretary to the committee shall, on receipt of the application, forthwith examine the application and shall, where the application is— (i) complete and in accordance with the guidelines, give, within 3 working days of the date of receipt of the application, written notice to the applicant thereof; or (ii) is not complete or not in accordance with the guidelines, give, within 3 working days of the date of receipt of the application, written notice to the applicant thereof, specifying the information or documents required and the time limit, which shall not exceed 8 working days from the date of the notification, for submission of the required information or documents. (d) Where the application is complete, the Secretary to the committee shall forthwith refer the application to the committee and the committee shall examine the application in accordance with subsection (8A) (a) and (b). (3AA) — (3B) — (4) An application under subsection (3) may be made by the owner of the land jointly with any other person where it is proved to the satisfaction of the Minister that the owner cannot alone comply with sections 11 and 29 (1) (c) (ii), (d) or (f), as the case may be, and that those undertakings will be given and complied with jointly and severally by the owner and that other person. (4A) Subsections (1) to (4) shall not apply to a person who puts agricultural land to non-agricultural use where— (a) the applicant, being an owner of an extent of land not exceeding 4.221 hectares (10 arpents) in the aggregate, which or part of which is agricultural land, converts land of an extent not exceeding 2 hectares (4.7392 arpents) in the aggregate; and (b) the agricultural land is— (i) located in an area where development is permissible in accordance with an outline scheme or the strategic and detailed development policies of a development plan, as the case may be; (ii) land other than land within an irrigation area; and (iii) subject to subsection (4AA), land other than land which is subdivided for agricultural purposes under the Morcellement Act. [Issue 9] S49 – 28 Revised Laws of Mauritius (4AA) For the purpose of subsection (4A), the minimum plot size for land subdivided for agricultural purposes shall be— (a) where the subdivision relates to a donation by an ascendant to a descendant and the site is— (i) within the settlement boundary, 10 perches; (ii) outside the settlement boundary, 20 perches; (b) in any other case, 50 perches. (4B) Notwithstanding the Morcellement Act, where an owner of agricultural land, who, pursuant to subsection (4A), is exempted from the requirements of subsections (1) to (4)— (a) applies for and is issued with a morcellement permit in respect of that land under that Act, he shall be exempted from the payment of the fees payable under section 9 of that Act; (b) is issued with a letter of intent in respect of that land under section 6 of that Act, he may, subject to such conditions as the Morcellement Board may determine, including the furnishing of such security as it may determine, enter into an agreement to sell any portion of that land and receive payment in that respect. (4C) Notwithstanding this Act or any other enactment, where an owner of agricultural land who, pursuant to subsection (4A) is ex f the fees payable under section 9 of that Act; (b) is issued with a letter of intent in respect of that land under section 6 of that Act, he may, subject to such conditions as the Morcellement Board may determine, including the furnishing of such security as it may determine, enter into an agreement to sell any portion of that land and receive payment in that respect. (4C) Notwithstanding this Act or any other enactment, where an owner of agricultural land who, pursuant to subsection (4A) is exempted from the requirements of subsections (1) to (4) sells that land, the deed of transfer shall— (a) be exempted from the payment of— (i) any tax leviable under Part III of the Land (Duties and Taxes) Act; and (ii) the transcription fee leviable under the Transcription and Mortgage Act; and (b) contain a declaration from the vendor that— (i) the applicant is an owner of land, which or part of which is agricultural land, of an extent not exceeding 4.221 hectares (10 arpents) in the aggregate; and (ii) the agricultural land is— (A) located in an area where development is permissible in accordance with an outline scheme or the strategic and detailed development policies of a development plan, as the case may be; (B) land other than land within an irrigation area; and (C) land other than land which has been subdivided for agricultural purposes under the Morcellement Act; S49 – 29 [Issue 9] Sugar Industry Efficiency Act (ii) the agricultural land is— (A) located in an area where development is permissible in accordance with an outline scheme or the strategic and detailed development policies of a development plan, as the case may be; and (B) land other than land within an irrigation area. (4CA) — (4D) Subsections (1) to (4) shall not apply to a purchaser of agricultural land under subsection (4C), or to any subsequent purchaser of that land. (4E) Subsections (1) to (4) shall not apply to a person who transfers agricultural land— (a) to an occupier of a former sugar estate camp owned by a planter or a miller; (b) to an employee who has voluntarily terminated his contract of employment under a VRS, an ERS or in the context of a factory closure taking place after 1 July 1997 pursuant to section 30 of the Mauritius Cane Industry Authority Act. (4F) (a) Where an authority for land conversion is granted under this section and— (i) the authority has not lapsed by virtue of paragraphs 7 and 8 of the Twelfth Schedule; (ii) the applicant has not been able to convert part or the totality of the site; and (iii) the owner intends to carry out the conversion at the existing site for another purpose or at an alternative site, for the purpose for which authority has been obtained or for another purpose, the owner may, notwithstanding section 11 (5) and (6), apply for conversion under subsection (3) at the existing site for the new purpose or at the alternative site and for the existing or new purpose, as the case may be. (b) The application referred to in paragraph (a) shall be accompanied by— (i) such non-refundable processing fee as may be prescribed; and (ii) a declaration, in writing, by the applicant that the agricultural land in respect of which an authority has initially been granted has not been put to non-agricultural use. (c) Where an authority to carry out conversion at an alternative site is granted— (i) the owner shall forthwith return the authority initially granted and all its photocopies; (ii) the authority initially granted shall be cancelled; and l be accompanied by— (i) such non-refundable processing fee as may be prescribed; and (ii) a declaration, in writing, by the applicant that the agricultural land in respect of which an authority has initially been granted has not been put to non-agricultural use. (c) Where an authority to carry out conversion at an alternative site is granted— (i) the owner shall forthwith return the authority initially granted and all its photocopies; (ii) the authority initially granted shall be cancelled; and [Issue 9] S49 – 30 Revised Laws of Mauritius (iii) any land conversion tax paid in respect of the initial authority shall be offset against land conversion tax due in respect of the alternative site and any amount underpaid or overpaid shall be paid or refunded, as the case may be. (4FA) (a) Where a person who is entitled to convert land under section 11 (3) and (11), or to an exemption from land conversion tax under section 29 (1) (c) (ii), (d) or (f) or in such circumstances as may be prescribed, makes an application under this section for land conversion in respect of a site situated in a smart city area, the area to be converted free of land conversion tax shall, notwithstanding this Act, be reduced by such factor as may be prescribed. (b) Where a person who— (i) has obtained approval to convert land under this section pursuant to section 11 (3) and (11); or (ii) has obtained approval to convert land under this section and has obtained an exemption from land conversion tax under section 29 (1) (c) (ii), (d) or (f) or in such other circumstances as may be prescribed, makes an application under subsection (4F) for a change in site to a smart city or within a smart city area, the area in the relocated site to be converted free of land conversion tax shall, notwithstanding this Act, be reduced by such factor as may be prescribed. (c) Where the change in site referred to in paragraph (b) is from a smart city area to a site outside that area, the area of the relocated site to be converted free of land conversion tax shall, notwithstanding this Act, be reduced by such factor as may be prescribed. (d) Where land conversion rights are transferred to, or acquired by, a Smart City company pursuant to section 28B, the land conversion rights shall, notwithstanding this Act, be reduced by such factor as may be prescribed. (e) The factor referred to in this subsection shall not apply if the area to be relocated has already been reduced by the factor in accordance with paragraphs (a) to (d). (f) In this subsection— “smart city area” means an area in respect of which a letter of comfort, a letter of intent or an SCS certificate is issued under the Investment Promotion (Smart City Scheme) Regulations 2015. (4G) Where an owner is granted authority for land conversion for the setting up of— (a) an 18-hole golf course; (b) a power station for the supply of electrical power using renewable energy; or S49 – 31 [Issue 9] Sugar Industry Efficiency Act (c) a solar farm, an agri-solar farm or a unit for the production of electrical power using biomass, and he intends to use the land, in respect of which the authority was granted, for another purpose, he shall make an application for conversion of the land under subsection (3) for the new purpose. (5) In determining an application under subsection (3), the Minister shall have regard, inter alia, to the necessity of— (a) ensuring that the level of production of sugar is sufficient to meet the commitments of Mauritius; ( i-solar farm or a unit for the production of electrical power using biomass, and he intends to use the land, in respect of which the authority was granted, for another purpose, he shall make an application for conversion of the land under subsection (3) for the new purpose. (5) In determining an application under subsection (3), the Minister shall have regard, inter alia, to the necessity of— (a) ensuring that the level of production of sugar is sufficient to meet the commitments of Mauritius; (b) preserving agricultural land; (c) optimising agricultural production; (d) preventing speculation in agricultural land; (e) respecting outline schemes and planning and development directives; and (f) preserving irrigation areas. (6) There is established for the purpose of advising the Minister on an application under subsection (3) a committee to be known as the Land Conversion Committee. (7) The committee shall consist of— (a) a representative of the Ministry responsible for the subject of agriculture, who shall be the Chairperson, designated by the Minister; (b) a representative of the Ministry responsible for the subject of environment; (c) a representative of the Ministry responsible for the subject of lands; (d) a representative of the Ministry responsible for the subject of public utilities; (e) a representative of the Mauritius Cane Industry Authority; (f) a representative of the Sugar Insurance Fund Board; (g) a representative of the Irrigation Authority; and (h) a representative of the relevant local authority. (7A) (a) The committee may co-opt as member the representative of any other Ministry or any other person who, in the opinion of the committee, may assist it in the discharge of its functions and expediting the processing of an application under this section. (b) No co-opted member shall have the right to vote. (8) The committee shall— (a) meet as often as may be necessary but at least once a month; (b) regulate its meetings and proceedings in such manner as it may determine; and [Issue 9] S49 – 32 Revised Laws of Mauritius (c) tender its advice on an application under subsection (4) within 6 weeks of the effective date of receipt of the application. (8A) (a) In the discharge of its functions under subsection (8) (c), the committee— (i) shall examine the application, taking into account the guidelines issued by the Ministries and bodies referred to in subsection (7); and (ii) may request the applicant to attend a meeting of the committee, within the time limit referred to in subsection (8) (c), for the purpose of giving such clarification or explanation relating to the application as the committee may determine. (b) Every member of the committee shall convey his stand on the application within 4 weeks of the effective date of receipt of the application, failing which he shall be deemed to have no objection to the authority for land conversion being granted by the Minister. (8AA) (a) The committee may direct an applicant to amend his application where the application does not comply with relevant planning policy guidance issued under the Planning and Development Act. (b) The committee may, in particular, in exercising its power under paragraph (a), direct an applicant to amend his application so that the conversion is for a mixed development use, comprising residential, commercial, leisure and social components, with a defined percentage allocated to every component. (c) Where the applicant does not amend his application as direct ation where the application does not comply with relevant planning policy guidance issued under the Planning and Development Act. (b) The committee may, in particular, in exercising its power under paragraph (a), direct an applicant to amend his application so that the conversion is for a mixed development use, comprising residential, commercial, leisure and social components, with a defined percentage allocated to every component. (c) Where the applicant does not amend his application as directed by the committee under paragraph (a), the committee shall not consider the application. (8B) The guidelines referred to in subsections (3A) and (8A) shall be available for consultation at the Ministry and posted on the website of the Ministry. (8BA) On receipt of the advice of the committee under subsection (8) (c), the Minister shall, within 2 weeks of the date of receipt of that advice, give written authority for land conversion to the applicant or inform him in writing that his application has not been granted. (9) At any meeting of the committee, 4 members, including the Chairperson, shall constitute a quorum. (10) Where a member of the committee has any interest, direct or indirect, in any matter before the committee, he shall, as soon as is reasonably practicable, disclose to the committee the nature of his interest and shall not take part in the deliberations of the committee relating to that matter. S49 – 32 (1) [Issue 9] Sugar Industry Efficiency Act (11) Notwithstanding this Part— (a) any application in respect of any extent of land by the owner of land of an extent not exceeding 10 arpents which, on 1 January 2008 was considered as non-agricultural land under this Part and has since not been put to agricultural use, shall be dealt with and processed as if section 8 (a) of the Sugar Industry Efficiency (Amendment) Act 2013 had not come into operation; (b) any application for the conversion of land that formed part of an agricultural morcellement in respect of which a morcellement permit was obtained prior to the coming into operation of sections 7 (a) (iii) and 8 (b) (iii) of the Sugar Industry Efficiency (Amendment) Act 2013 shall be dealt with and processed as if that Act had not come into operation. [S. 28 amended by s. 16 of Act 28 of 2004 w.e.f. 6 August 2004; s. 8 of Act 29 of 2004 w.e.f. 1 December 2004; s. 28 (d) of Act 14 of 2005 w.e.f. 21 April 2005; s. 3 of Act 30 of 2005 w.e.f. 15 November 2005; s. 29 (g) of Act 15 of 2006 w.e.f. 7 August 2006; s. 11 of Act 3 of 2007 w.e.f. 1 March 2007; s. 29 (b) of Act 17 of 2007 w.e.f. 22 August 2007; s. 23 (c) of Act 1 of 2009 w.e.f. 16 April 2009; s. 29 (c) of Act 20 of 2011 w.e.f. 16 July 2011; s. 17 (a) of Act 37 of 2011 w.e.f. 15 December 2011; s. 27 (a) of Act 26 of 2012 w.e.f. 15 December 2012; s. 8 of Act 15 of 2013 w.e.f. 29 June 2013; s. 43 of Act 27 of 2013 w.e.f. 29 June 2013 and 21 December 2013; s. 49 (b) of Act 9 of 2015 w.e.f. 14 May 2015; s. 52 (b) of Act 18 of 2016 w.e.f. 7 September 2016 and 1 November 2016; s. 14 of Act 34 of 2016 w.e.f. 1 January 2017.] tember 2016 and 1 November 2016; s. 14 of Act 34 of 2016 w.e.f. 1 January 2017.]