Watumishi Housing seeks VAT axe on houses

                                  WHC’s CEO, Dr Fred Msemwa.

By Correspondent

 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