Tanzania National Housing Corporation Lobbies for VAT Reduction On Properties To Boost Investments

The National Housing Corporation (NHC) is lobbying for removal or reduction of VAT at 18% on construction materials and houses and is hopeful to increase its total project investment by 25% by the end of 2015.

The NHC believes that its houses would become more affordable to the public upon the scrapping of 18% VAT, which pushes the prices up.

Additionally, at the Dar es Salaam Expo on 10-11th of May, NHC Director General Nehemiah Mchechu said he was expecting the total project investment to increase by TZS 200 billion, from TZS 800 billion this year to TZS 1 trillion in 2015.

According to Mr Mchechu, the total project investment can be increased with the help of the private sector financing infrastructure building and construction.

Mr Mchechu also announced that NHC is expected to build 15,000 housing units by 2015, helping to reduce the housing deficit in Tanzania, which is roughly estimated at 3 million units.

The National Housing Corporation being formed through the Act of Parliament in 1990, and being under the Ministry of Lands, Housing and Settlements Development is currently responsible for the construction of affordable houses for sale and construction-related matters.

RELATED:  32nd Annual Conference on Housing and Africa Growth Agenda to be Held in Nigeria on 14th–16th September 2016