THE Tanzania Revenue Authority (TRA) has announced an increase in property tax that will be charged through the purchase of electricity from July, this year.
TRA In collaboration with the
Tanzania Electricity Corporation (Tanesco) has explained that the change in the
tax has resulted from the change in the Law of Local Governments on Real Estate
Tax Collection, Chapter 289 through the Finance Law of 2023 where the tax
collection rates have changed and also expand Scope of Tax Collection,
Including Existing Houses in All Areas of the District.
According to the information
provided by TRA yesterday, a normal house that was charged Sh.12,000 per year,
will now be charged Sh18,000 equal to Sh.1,500 per month.
Apartment Houses in Urban
Areas, Town Council Municipalities that used to be charged Sh60,000 per floor
per year, will now be charged Sh90,000 per floor, equivalent to Sh7,500 per
month.
That information explains that
apartment houses in the areas of district councils that used to be charged
Sh.60,000 per house per year, will now be charged Sh.90,000.
"Implementation of
charging this real estate tax in accordance with the changes mentioned above,
has started in July, 2023. The levels of real estate tax that have changed and
will continue to be charged through the purchase of electricity," said
part of the statement.
The announcement has come just
a few days since the government proposed the reforms through the budget speech
read in parliament in June, this year.