Efforts
by Watumishi Housing Company (WHC) to build and dispose affordable
houses to public servants are crippled by nuisance taxes such as value
added tax.
During the last budget session, the government announced plans to scrap VAT on houses valued below 38m/-.
“We request the government to put into effect its promise to
abolish on houses whose price is below 38m/- as promised during the last
budget session held in Dodoma through the Ministry of Lands, Urban and
Settlements Development,” pleaded WHC’s CEO, Dr Fred Msemwa.
Dr Msewa said by maintaining VAT on new houses it defeats the
primary goal of providing lowly paid public servants and low-income
earners in the country with affordable descent houses.
Dr Msemwa was speaking during a brief event to launch official selling for Mkundi housing project in Morogoro.
Briefing Morogoro Regional Commissioner, Dr Rajabu Rutengwe on WHC
activities, Dr Msemwa gave an example of a two bed room house on sale at
Mkundi in the outskirts of Morogoro municipal which fetches a price of
33, 728, 814 VAT excluded but rises to 39, 800, 000 when 18 percent VAT
is added.
“WHC which was established in late 2013 had a specific mission to
build and dispose descent, modern yet affordable houses to public
servants and low income bracket people in the country,” he pointed out.
He said research and modern technology have significantly assisted
WHC bring down construction costs but only VAT remains a stumbling
block.
The 40 houses on sale at Mkindu range between 38.7m/- and 59.2m/-
for six two bedroom units, 24 three bedroom units on a plot of 85 square
metres and three, three bedroom units on a plot of 115 sq. M.
with prices in Tanzania shillings shwon in brackets shows there
are six two bedroomed units with a built area of 60 square metres (38,
728, 814 ), 24 three bedroomed units with a built area of 85 square
metres (47, 203, 390) and three, three bedroomed units with a built area
of 115.
Launching the sales drive, Dr Rutengwe called on Morogoro
municipality public employees to seize the opportunity and buy the
houses.
“You are almost going to have triple advantages by purchasing the
new Watumishi housing units here at Mkundi by accessing a bank loan or
entering into a contract to purchase the house by installment living in
it,” Dr Rutengwe noted.
The RC expressed his delight on the part of WHC management to
choose Morogoro municipal as its launching-pad of a nationwide campaign
to set up over 50, 000 descent, modern yet affordable houses saying the
decision was timely as Morogoro has a good number of public servants who
are in dire need of modern houses.
SOURCE:
THE GUARDIAN
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