Govt scraps VAT on housing 

THE government has removed the Value Added Tax (VAT) for buyers of residential houses built by public institutions, including the National Housing Corporation (NHC) if the value is less than  50m/- .

The Chief Tax Officer from Tanzania Revenue Authority (TRA) Headquarters, Mr Deo Kabuteni clarified about the by-law changes on Wednesday this week during the opening of a meeting which involved businessmen in Geita Town.

Mr Kabuteni said that the government has made changes in the law governing land rent whereby the charges will be covered by owners of the houses and not by the tenant (for commercial houses) as it was before.

He said that last year’s law required the landlord to withhold 10 percent as rent from the tenants, but due to inconveniences encountered the responsibility has now been shifted to the landlord.

“Currently, the owner of the house will be the one responsible for withholding the tax (10 per cent) and then he is the one who is going to pay it to TRA offices, so let the tenants be comfortable,”.

“We are clarifying the changes in which are effective from this financial year so that they can be aware of the changes and do their businesses comfortably,” he said.

He urged traders to monitor and consider the changes in the tax law adopted by the government for this financial year for them to be aware of the products exempted from VAT.

Geita Regional TRA Manager, Maimuna Khatibu said that TRA has set strategies to execute their duties in a good manner without complaints by businessmen as directed by the sixth phase government.

“If any businessman has any challenge, he or she is welcomed to the TRA offices nearby him or her, for the challenges to be resolved,” Khatibu said.