Takalani Sesame
JF-Expert Member
- Jun 24, 2008
- 588
- 161
The irony of low-cost National Housing Corporation houses being sold at prices well beyond the means of most Tanzanians played itself before President Jakaya Kikwete as he unveiled the construction of 290 units in the city yesterday.
The parastatal's houses to be built at Kibada to the south of Dar es Salaam would sell for a minimum price of Sh42 million, an amount that a large majority Tanzanians cannot afford.
In appreciation of this fact, officials from NHC and the ministry of Lands, Housing and Human Settlement implored President Kikwete to intervene to help reduce some of the construction costs that push the properties beyond the pockets of even the so-called middle class Tanzanians.
Factors that make NHC houses unaffordable include high interest rates charged by commercial banks to clients taking housing loans, the cost incurred by NHC to put in place social services infrastructures in their estates such as feeder roads, water and electricity.
Others are high taxes imposed on importation of building materials and the 18 per cent Value Added Tax (VAT) that NHC customers pay upon purchasing a home.
The public entity's director general Nehemia Mchechu said the fact that NHC has to build infrastructure in the newly built homes pushes up prices by 18 per cent.
This is because Tanesco, the Dar es Salaam Water Supply Company (Dawasco) and local governments aren't keen on chipping in, he said.
According to Mr Mchechu, if these public firms joined hands with NHC, the burden on home buyers would be reduced immensely. He noted that the VAT plus infrastructures increase the cost of the houses by 36 per cent.
"For example in the project that you are going to launch today, Mr President, a two-bedroom house should be sold for Sh38.9 million without VAT, but since we are the only country in the world that imposes VAT on home buyers, a Tanzanian will be forced to cough up Sh45 million to purchase a house," said he.
For his part, the deputy minister for Lands, Housing and Human Settlement, Mr Goodluck ole Medeye, faulted banks for imposing high interests for wananchi who want to acquire mortgage.
According to him, the interest rate of between 15-20 per cent has been putting off the majority of Tanzanians from acquiring bank loans. Regarding taxes on construction materials, Mr Mchechu said if it won't be possible to totally waive the taxes, the government should consider waiving taxes on the purchase of houses priced at less than Sh100 million.
Responding to the concerns, President Kikwete concurred with the NHC officials that there were things to be done to make home buying affordable to the majority of Tanzanians. He directed the Treasury, the Bank of Tanzania and the Housing ministry to come up with a strategy that would lower interest rates for housing loans. But the President also challenged the NHC management to weigh the possibility of establishing its own financial institution.
"By having your own subsidiary financial institution, which would be issuing low interest loans to wananchi and NHC itself, you would be setting the tone for other financial institutions," said he.
Mr Kikwete insisted that his administration would never consider a total removal of VAT on new homes. He said his government would only mull over readjusting VAT in accordance with prevailing situations.
According to him, the value of the houses hasn't only been caused by the taxes but also by some district council officials' greed. Most of them, he said, have commercialised land, which has made it difficult for ordinary Tanzanians to afford.
"For an example, a district council can acquire a piece of land at Sh6 million from a mwananchi but the council would proceed to sell the same land after some few months at Sh300 million," he noted.
Speaking earlier, the NHC board of directors chairman, Mr Kesogukewele Msita, said the parastatal has acquired 28,000 hectares of land across the country that would be used to build houses. Mr Msita also told the President that in the next three years, NHC would charge its tenants rent that is 85 per cent of the market price. Presently, NHC tenants pay rent that is 60 per cent of the market price.
The Kibada project is one among the 14 that NHC has started to implement. It will see a total of 900 houses targeting the low and medium income earners put up, being part of a plan to build 15,000 houses in the next three years.
Source: The Citizen
My take kwenye hili suala:
The parastatal's houses to be built at Kibada to the south of Dar es Salaam would sell for a minimum price of Sh42 million, an amount that a large majority Tanzanians cannot afford.
In appreciation of this fact, officials from NHC and the ministry of Lands, Housing and Human Settlement implored President Kikwete to intervene to help reduce some of the construction costs that push the properties beyond the pockets of even the so-called middle class Tanzanians.
Factors that make NHC houses unaffordable include high interest rates charged by commercial banks to clients taking housing loans, the cost incurred by NHC to put in place social services infrastructures in their estates such as feeder roads, water and electricity.
Others are high taxes imposed on importation of building materials and the 18 per cent Value Added Tax (VAT) that NHC customers pay upon purchasing a home.
The public entity's director general Nehemia Mchechu said the fact that NHC has to build infrastructure in the newly built homes pushes up prices by 18 per cent.
This is because Tanesco, the Dar es Salaam Water Supply Company (Dawasco) and local governments aren't keen on chipping in, he said.
According to Mr Mchechu, if these public firms joined hands with NHC, the burden on home buyers would be reduced immensely. He noted that the VAT plus infrastructures increase the cost of the houses by 36 per cent.
"For example in the project that you are going to launch today, Mr President, a two-bedroom house should be sold for Sh38.9 million without VAT, but since we are the only country in the world that imposes VAT on home buyers, a Tanzanian will be forced to cough up Sh45 million to purchase a house," said he.
For his part, the deputy minister for Lands, Housing and Human Settlement, Mr Goodluck ole Medeye, faulted banks for imposing high interests for wananchi who want to acquire mortgage.
According to him, the interest rate of between 15-20 per cent has been putting off the majority of Tanzanians from acquiring bank loans. Regarding taxes on construction materials, Mr Mchechu said if it won't be possible to totally waive the taxes, the government should consider waiving taxes on the purchase of houses priced at less than Sh100 million.
Responding to the concerns, President Kikwete concurred with the NHC officials that there were things to be done to make home buying affordable to the majority of Tanzanians. He directed the Treasury, the Bank of Tanzania and the Housing ministry to come up with a strategy that would lower interest rates for housing loans. But the President also challenged the NHC management to weigh the possibility of establishing its own financial institution.
"By having your own subsidiary financial institution, which would be issuing low interest loans to wananchi and NHC itself, you would be setting the tone for other financial institutions," said he.
Mr Kikwete insisted that his administration would never consider a total removal of VAT on new homes. He said his government would only mull over readjusting VAT in accordance with prevailing situations.
According to him, the value of the houses hasn't only been caused by the taxes but also by some district council officials' greed. Most of them, he said, have commercialised land, which has made it difficult for ordinary Tanzanians to afford.
"For an example, a district council can acquire a piece of land at Sh6 million from a mwananchi but the council would proceed to sell the same land after some few months at Sh300 million," he noted.
Speaking earlier, the NHC board of directors chairman, Mr Kesogukewele Msita, said the parastatal has acquired 28,000 hectares of land across the country that would be used to build houses. Mr Msita also told the President that in the next three years, NHC would charge its tenants rent that is 85 per cent of the market price. Presently, NHC tenants pay rent that is 60 per cent of the market price.
The Kibada project is one among the 14 that NHC has started to implement. It will see a total of 900 houses targeting the low and medium income earners put up, being part of a plan to build 15,000 houses in the next three years.
Source: The Citizen
My take kwenye hili suala:
- Katika hali ya kawaida kabisa, asilimia kubwa ya hawa ‘middle class' wetu (ukiacha kabisa wale wa kipato cha chini) ni ngumu kuweza kupata milioni 40 kwa mkupuo kununua hizi nyumba. Hivyo basi kimbilio inakuwa ni kwenye benki za biashara zenye huduma ya ‘mortgage financing' ambazo mpaka sasa riba zake ziko juu kiasi cha kwamba mpaka mtu aje amalize kulipia nyumba yake (kama atamaliza at all) atakuwa amegharamika kiasi kikubwa sana kwenye riba. Hii inaondoa dhana nzima ya ‘low cost houses' ambazo hazishikiki.
- Kama suala hapa ni kumsaidia mwananchi wa chini na wa kipato cha kati, kwa nini zisifanyike juhudi za makusudi za ushirikiano kati ya NHC, Tanesco na Dawasco katika miradi hii? Maana nachokiona hapa ni kwamba kili shirika linafanya kama vile liko kivyake vyake na kusahau kuwa wote wako chini ya mwamvuli mmoja wa serikali. Hivyo miradi yote ambayo itahitaji kufanya kwa ushirikiano kati ya mashirika ya serikali, yasainiwe makubaliano kati ya makatibu wakuu wa wizara zinazoongoza mashirika haya kuhusu mradi na maagizo yashushwe kwenye haya mashirika kwa utekelezaji. Kama nia ya dhati ni kumsaidia mwanachi wa kipato cha chini au cha kati, sioni kwa nini hili lishindwe kutekelezwa na vinginevyo itakuwa porojo za kisiasa tu.
- Kama kweli Tanzania ndio nchi pekee duniani yenye kutoza VAT kwenye manunuzi ya nyumba, je hatuoni kabisa kwamba bado hatujawa na nia ya dhati ya kuboresha makazi ya watu kwa maana kuweka mazingira ambayo wananchi watapata nyumba bora na kwa bei nafuu? Huwezi ukawa unapasua kichwa kuleta miradi ya nyumba za bei nafuu wakati huo huo unaweka mazingira ambayo hayatoi unafuu wowote kwa Yule ambaye umepanga apate huo unafuu. Hii ni sawa na kumnulia mtoto mdogo anayetambaa matunda ili aboreshe afya yake kasha hayo matunda ukamwekee juu ya kabati ukijua kabisa hataweza kuyafikia. Mwisho wa siku watakuja kaka na dada zake watayachukua na kuyala. Hii VAT kwenye nyumba za bei nafuu za NHC iondolewe kabisa.
- NHC imefanya utafiti wa kutosha kuhusiana na materials za ujenzi? Maana kama nyumba ni za gharama nafuu, basi asilimia kubwa ya building materials inabidi zitoke hapa hapa ndani kwa kuanzia. Na hizo chache kama zitahitajika kuagizwa toka nje, kwa miradi ya NHC, basi serikali itoe unafuu wa kodi baada ya kujiridhisha na michanganuo ya gharama na mahitaji ya NHC katika mradi husika.
