By Felix Andrew
PROPERTY tax collection during this year has increased by 20.6 percent after the exercise was shifted to Tanzania Revenue Authority (TRA) the Deputy Minister for Finance and Planning, Ashatu Kijaji has told Parliamentarians in Dodoma
Responding to a question asked by Cecilia Paresso , Special Seats Legislator ,(Chadema), the deputy minister said earlier the property tax was collected by District councils.
In her supplementary question ,the MP had wanted to understand the progress of property tax since it was assigned to TRA. A flat rate of shillings 15,000/- and 50,000/- has been placed for normal house and high rise structure respectively in municipalities and cities.
Special Seats Legislator (Chadema) Cecilia Paresso
Reacting, Deputy Minister said TRA has managed to collect shillings 34.09 billion during the financial year 2016/17 as compared to district councils which collected shillings 20.6billion during the year 2015/16.
“You can see there is an increase of 20.6 percent since TRA started to collect property tax this year, she said adding that the money would be returned to district authorities for development activities”.
According to her property tax has been important tax among many municipals in Tanzania and rest of Africa
“Property tax is the relevant source of revenue because it links the service provided by local government and enhancement in property value”, she said.
Revenue from property tax spent on different services such as fire, police protection, roads, drainage, and street lighting results in increased property values within the jurisdiction
Experts say, increasing demand of public services and the local government need to finance some of its project by revenue from property tax making it an issue of concern globally that caused many countries to impose tax on real property.
The local government is interested on revenue from property taxes to finance local
Social services provision to the people. Property tax has an opportunity to enhance
public fiscal policy decision on local government expenditure therefore property tax is required by the local Government.
Property tax is very special ingredient of fiscal policy for municipal governments and
the most important required local government source of revenue in most countries.
However government should take into considerations of the old and new houses and charge according to the years.
In urban areas services from Government do not match with the property tax charged, the drainage system and roads are poorly cleaned in most of the urban areas of Tanzania.