Taxation on building materials hinders PSPF housing project

By The guardian reporter

Gabriel Silayo, PSPF Director of Planning and Investment

 

The government has been urged to reduce value added tax imposed on construction materials so as to give more leverage to Tanzanians to own affordable houses.


Speaking in an interview with this paper Gabriel Silayo, who is the Director of Planning and Investment at the Public Service Pensions Fund (PSPF), said the cost of houses and housing is growing high because of the increasing tax levels.

“There is tax imposed on plots and other construction materials which makes prices of houses sold to ordinary people to be higher, the government should reduce it,” he said.

Silayo noted that the fund has already announced to sell over 600 houses countrywide to its members and non members, saying the price for each house ranges between 61.36m/- and 74.34m/- upcountry and 66.08m/- and 83.78m/- in Dar es Salaam Region.

Besides Dar es Salaam other regions where the houses are located are Mtwara, Shinyanga, Tabora and Iringa.

“These houses could be sold at half the price if the taxes imposed on construction materials were removed or reduced significantly,” he said.
However he said the Watumishi Housing project, a government establishment, would the fund in the sale of the houses at affordable prices.

The project in collaboration with other stakeholders plan to construct over 50,000 affordable houses to be sold to ordinary people.

Meanwhile, the PSPF Supplementary Scheme manager Mwajaa Sembe, has said 4,759 people including foreigners have joined the scheme since it started last year.
Under the new window any person whether self- employed or formally employed by private entities can become a member. 

SOURCE: THE GUARDIAN