17% VAT slows sale of National Housing flats
May 29, 2005
THE sale of National Housing and Construction Corporation (NHCC) flats under the condominium property scheme has been hampered by a 17% Value Added Tax (VAT) levy.
By Felix Oketcho
THE sale of National Housing and Construction Corporation (NHCC) flats under the condominium property scheme has been hampered by a 17% Value Added Tax (VAT) levy.
The levy increases the purchase prices for a unit of two bed rooms, a kitchen, toilet and birthroom and living room from between sh27m and sh29m to sh34m.
This has kept off several of the would owners, many of whom are sitting tenants.
The condominium property law enacted in 2001 by Parliament and effected in August 2003 kick-started the sale of 1,541 flats located in several city surburbs.
Only 210 flats have so far been sold.
NHCC expected to raise sh65b through the sale.
The sale which was supposed to be done within two years, has also been frustrated by slow acquisition of titles.
“The land registration department is slow in issuing titles. This is the major bottleneck to the corporation in selling off flats,†Martin Kasekende, NHCC the general manager said in an interview last week.
The state corporation offered 348 flats in Kololo, Mbuya, Bugolobi and Nakawa.
The law allows people to acquire flats but the properties are registered and managed on behalf of the corporation.
Ends
THE sale of National Housing and Construction Corporation (NHCC) flats under the condominium property scheme has been hampered by a 17% Value Added Tax (VAT) levy.
The levy increases the purchase prices for a unit of two bed rooms, a kitchen, toilet and birthroom and living room from between sh27m and sh29m to sh34m.
This has kept off several of the would owners, many of whom are sitting tenants.
The condominium property law enacted in 2001 by Parliament and effected in August 2003 kick-started the sale of 1,541 flats located in several city surburbs.
Only 210 flats have so far been sold.
NHCC expected to raise sh65b through the sale.
The sale which was supposed to be done within two years, has also been frustrated by slow acquisition of titles.
“The land registration department is slow in issuing titles. This is the major bottleneck to the corporation in selling off flats,†Martin Kasekende, NHCC the general manager said in an interview last week.
The state corporation offered 348 flats in Kololo, Mbuya, Bugolobi and Nakawa.
The law allows people to acquire flats but the properties are registered and managed on behalf of the corporation.
Ends