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The house tax reform is not a reason to increase the rent - Addis Ababa Revenue Office

The Addis Ababa Revenue Office stated that the house tax reform implemented by the Addis Ababa city administration is based on research and cannot be a reason to increase house rent.

It is said that the amendment will help to expand the people-oriented projects and infrastructure that the city administration works to benefit the residents.

In his meeting with the ESA, Zegye Laineh, the deputy head of the tax affairs department at the Addis Ababa Revenue Bureau, stated that the house tax reform was carried out in a timely and research-based manner.

The Decree on City Land Rent and City House Tax issued in 1937 was last amended in 1968.

Proclamation No. 80/1968 has been in force for the past 47 years and Article Five of the Proclamation; It stipulates that individuals, families, organizations, or cooperatives who own houses in cities must pay a tax or taxes on the houses they own.

Mr. Zegye said that this decree, which has not been amended for more than four decades, indicates that the house tax will be amended regularly and is up-to-date.

Based on this, they stated that the house tax rate, which has not been revised for many years, has been revised based on research.

He recalled that most of the existing properties in the city were the ones paying the house tax. According to the new study, it was decided that the houses in the city, including the condominiums, should pay the house tax.

He mentioned that more than 22,000 of those who were paying house tax were paying less than 10 birr and more than 2,500 were paying less than one birr.

He mentioned that this is very small in terms of the income that should be collected to answer the people's immediate development demands.

He said that the current reform will take into consideration the level of housing, the government's spending on infrastructure and the environment, so that appropriate taxes can be paid.

He pointed out that the government intends to reduce the tax payer's burden and that individuals have to pay only 50 percent and organizations 75 percent of what they had to pay.

He also stated that the administration has built many infrastructures including people-oriented projects that have benefited the residents.

For example, he said that he is benefiting the people by opening the students' food, infrastructure and many food centers.

He pointed out that the reform of house tax was determined fairly in order to collect income that can be used to further expand the development works that the administration has started to benefit the people.

It is known that the Addis Ababa city administration has decided that it will not be possible to increase the price or evict tenants until June 30, 2015 (E.C) due to the roof and wall tax.

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