Property tax up by 50 percent as TRA announces new changes
What you need to know:
- Owners to pay Sh18,000 per standard building within the compound, up from Sh12,000 previously levied per year.
- For single storey buildings in towns, municipal and city councils will be levied at Sh90, 0000 from Sh60,000.
Dar es Salaam. Owners of residential buildings in Tanzania are set to pay a higher property tax after the Tanzania Revenue Collection (TRA) announced new rates on Wednesday, July 26.
The new changes are for property tax collection, which is paid through purchase of electricity tokens.
This follows the amendment of the Local Government Authorities (Rating) Act (CAP. 289) made through The Finance Act 2023.
The principal act states that the new rate will be collected at the mud huts, thatched houses, mud houses, and such other similar houses used for residential purposes in area declared as city council, municipal council, town council or district council.
Also, in the same amendment, the following act (CAP. 290), directs that the Tanzania Revenue Authority shall have the obligation to evaluate, assess, collect and account for property rate up to December 31, 2023; thereafter, the obligations shall vest in the local government authorities (LGAs), the obligation to collect and account for advertisement fees for billboards, posters and hoarding.
It should be noted that property tax was previously collected by local government authorities, but in 2016/17 this responsibility was transferred to TRA, and it has now been relocated back to LGAs.
TRA in a statement to the public on Wednesday July 26, stated that the rates will be Sh18,000 per standard building within the compound, up from Sh12,000 previously levied per year.
For single storey buildings in towns, municipal and city councils will be levied at Sh90, 0000 from Sh60,000.
However, in the case of district councils, apartment houses, regardless of the number of floors will be charged Sh90,000.
According to TRA each electricity buyer will be deducted Sh1500 per month for a normal house and Sh7500 per month for a storey building.
TRA states that it should be noted that the government began the implementation of property tax collection payments through the purchase of electricity tokens in July 2021.
