New tax in offing to shift tenants’ burden
DODOMA: THE government is working on a new mechanism to ensure that property tax is paid by building owners rather than tenants.
Deputy Minister for Finance, Laurent Luswetula, told Legislators yesterday that the government is aware of concerns over the current system, which requires tenants to pay property tax through LUKU electricity tokens despite not owning the properties.
He said the government is reviewing the arrangement and developing a more effective system that will facilitate the collection of property tax from property owners, thereby relieving tenants of the responsibility for a tax that should be paid by landlords.
The Deputy Minister said this while responding to a basic question from Special Seats MP, Tinnar Chenge (CCM) who wanted to know what criteria does the government use in charging Property Tax through the LUKU electricity metre system in the country.
She said some entrepreneurs were being charged property tax through LUKU electricity tokens while they have already paid rent to their landlords and landladies.
“I would like to hear from the government, what measures are being taken to resolve this problem because it is unfair for tenants to pay property tax while they do not own that property,” she explained.
Mr Luswetula said the government currently uses fixed rates when collecting property tax through LUKU electricity metres.
He said the ordinary residential houses are charged 18,000/- per year, equivalent to 1,500/- per month and storey buildings are charged 90,000/- per floor per year, equivalent to 7,500/- per floor per month.
He stated that houses made of thatch and mud, buildings used for social services, places of worship and homes occupied by senior citizens aged 60 years and above are exempt from property tax, unless such properties are used for commercial purposes.
Mr Luswetula added that property owners whose houses are not connected to electricity pay the levy through a system administered by Village Executive Officers (VEOs) and other local government officials, who provide them with control numbers for payment.
