Lands, Housing and Human Settlements Development minister Prof Anna Tibaijuka made the observation on Saturday here at the inauguration of a residential houses construction project undertaken by the National Housing Corporation (NHC) at Medeli area.
Under the project, 290 houses would be constructed, out of which 150 would be sold and the rest rented.According to the minister, a number of nations, including developed countries have waived taxes on construction materials, a move that has contributed to improvement of the housing industry.
She said it was time the government waived taxes on construction materials to enable the housing industry to grow.
Prof Tibaijuka also called upon the government to consider waiving the Value Added Tax (VAT) on houses constructed by the National Housing Corporation (NHC), a move she said would help reduce their prices.
The NHC has embarked on building apartments and single unit houses for sale and renting.
According to the corporation’s five–year strategic plan, a total of 15,000 units will be built in the country at the costs of 1.5trn/-. On average the corporation is expected to build 3,000 units per year.
At least 70 per cent of the houses to be contructed would be sold to Tanzanians who could also use them to access bank loans.
Prof Tibaijuka told the gathering that each house would be sold at 99m/-. She explained that the price would have been less if other ministries were to play their roles effectively.
Currently, the NHC carries the burden of fixing power, water and constructing roads leading to the sites. Under normal circumstances, those tasks are undertaken by the responsible ministries.
For his part, NHC Director General Nehemia Mchechu said other houses would be constructed at Iyumbu area where the corporation has acquired 264 acres of land.
He added that efforts were underway to search for land in Bahi and Chamwino districts for house construction. He said the procedure of selling the constructed houses would be transparent.
The 22.5bn/- Medeli project, according to him, began early this month and is expected be completed in March next year.
The projects are executed by four local contractors—namely Samcat Limited, Lukumbulu Investment Company Limited, Mindset Technics and Intercity Builders Limited.
The corporation awarded the tenders to local contractors to give them the opportunity to compete in terms of quality work, he said.
Tanzania faces a shortage of 3 million houses, according to Mchechu, who also said that every year a shortage of 200,000 housing units surfaces.
Prime Minister Mizengo Pinda, who was the chief guest at the ceremony, called upon the contractors awarded the tender to capitalise on the opportunity to prove their competence.
He also urged the NHC to craft modern techniques of collecting debts that tenants owe it.
Pinda said construction of the houses in Dodoma, apart from helping to meet requirements for the growing population, would improve the image of the designated capital. Dodoma’s population is estimated at 2.1 million people.
He implored NHC to conduct research on how to construct houses for low income earners instead of focusing on middle and high income groups only.
SOURCE: THE GUARDIAN
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