Tanzania Starts Listing All Buildings as it Eyes Property Tax Boom

Feb 17, 2021 - 09:35

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Tanzania Starts Listing All Buildings as it Eyes Property Tax Boom

Photo/Courtesy

Tanzania government has announced it will start listing all buildings across the country, immediately from Monday, next week, as it seeks to increase collections of property tax.

This was revealed by the Minister of State in the President’s office (PO-RALG), Selemani Jafo in Morogoro region where President John Magufuli inaugurated three industries dealing with leather, milling, and cooking oil refiner.

Mr Jafo said the Permanent Secretary in his office, regional commissioners, and local government officials will take part in the exercise that is expected to last until the 28th of February, this year.

Explaining further, the Minister said the listing of all buildings in the country will simplify the collection of property tax.

However, he said the exercises will not include religious buildings.

Early this month, Mr. Selemani Jafo, alongside the Deputy Minister for Finance and Planning, Ms. Mwanaidi Ali Khamis announced that the government has shifted the responsibility for collection of property tax from Tanzania Revenue Authority (TRA) to Local Government Authorities (LGAs).

At a joint press conference held in Dodoma, the duo told reporters that the move aims at increasing revenues.

The minister ordered city, municipal and district directors to come up with strategies that will ensure best practices in collecting revenues.

In July 2016, property taxation was recentralized and TRA was assigned full responsibility for administering the tax in the country.

At least 571.12 billion was collected from the local government authorities during the 2019/20 fiscal year.

The collection was equivalent to 89.7 percent of the target, which was to collect 765 billion.