Friday, April 3, 2015

Govt considers tax breaks for state-owned real estate firm


The National Housing Corporation (NHC) may in the near future enjoy substantial tax breaks or complete mission thereof to help lower its operating cost which in turn should see the state owned firm lower prices of houses.
 
Announcement to that effect was made mid this week by the Minister of Lands, Housing and Human Settlement Development William Lukuvi during his tour of five NHC house projects in Kigamboni, Victoria and Morocco in Dar es Salaam.
 
“We are working to see the possibility of reducing the multiple taxes being paid by NHC so that they can also reduce house prices to enable more people to buy them,” he announced.
 
According to the minister, taxes paid by NHC force the firm to place high house prices and as a result only few people can afford to buy them.
 “The government has ordered NHC to construct quality houses and sell them at low prices as a way to improve settlement in country, so the government must also make sure that it helps NHC lower its operating costs,” he said.
 
The minister visited five NHC projects including three new projects in Dar es Salaam at Victoria, Morocco and one more at 300 Regent that is close by. He visited two other projects at Kibada and Mwongozo in Kigamboni.
 
“I commend NHC for its great progress in constructing quality houses across the country, I call upon citizenry to buy the houses so as to avoid living in unplanned settlements,” urged the minister.
NHC Director of Innovation Issac Peter said the three new schemes in Dar es Salaam are valued at 189bn/-.
 
“The Morocco square construction is the biggest project covering a gross floor area of some 100,000 sq feet and is valued at 135bn/-,” he said.
 
“The project will take 36 months and it will have four high rise buildings,” he noted citing that the highest building will have 22 floors, another 18 floors, followed by 16 floors and the lowest will have 13 floors. 
“Construction at Victoria will cost 30bn/- and last for 26 months and will have 15 floors while the one at 300 Regent will have 19 floors will cost 24bn/- and will be completed within 24 months,” he explained.
 
NHC Director General Nehemia Mchechu said the current three projects are the biggest constructions under taken by the firm.
SOURCE: THE GUARDIAN

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