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(1) Every public agency is liable to pay rates in respect of immovable property owned by it unless exempted from assessment and rating by law.

(2) Where the Government would have been liable to pay rates to a rating authority in respect of premises it owns if it were a private person, the Government shall pay to the Minister, instead of the rates, the sums that may be agreed between the Government and the Minister.

(3) The Minister shall distribute the amount paid to the rating authority in proportion to the value of government properties in the district.