Tanzania housing buyers hope to benefit from reduction in VAT

Tanzania housing

The Tanzania Government has reduced VAT on the cost of Tanzania housing with the aim of helping low income families to pay for any possessions from the National Housing Corporation (NHC) which this year started the construction of 139 affordable houses, this is part of meeting the goal of 15,000 additional units this year.
The Deputy Minister for Lands, Housing and Human Settlement. Ms. Angela Kairuki said that the main aim of the Government is to ensure those in low income earning also access NHC services.
Mr. James Lembeli chairman of the parliamentary Lands , Natural Resources, and Environment Committee. said that the addition of 18% of VAT on Tanzania housing sold by NHC makes the final price exorbitant.
VAT was charged at 20% until the end of 2009 now it has been reduced and is charged at 18% for any goods or services in Tanzania
National Housing Corporation (NHC) the Tanzanian state owned corporation’s mission is to facilitate access to innovative housing solutions in Africa and is currently lobbying for elimination or a decrease of VAT at 18% on construction resources and Tanzania housing and is expectant to add to its total project investment by 25% by the end of 2015.
NHC and the government of Tanzania have teamed up to work together towards a solution to the housing scarcity that the country is facing with only three million houses for a population of more than forty nine million people.

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