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The implemented housing tax reform cannot be a reason to increase the rent!
- Addis Ababa Revenue Office
#Ethiopia The Addis Ababa Revenue Bureau stated that the house tax reform implemented by the Addis Ababa city administration was done based on a study, so it cannot be a reason to increase the 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.
Mr. Zegye Layneh, Deputy Head of the Tax Affairs Department of the Addis Ababa Revenue Bureau, stated that the house tax reform was carried out in a manner that was timely and based on research.
The City Land Rent and City House Tax Act was issued in 1937 and 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.
Remember that most of the existing properties in the city paid house tax; According to the new study, it has been decided that houses in the city, including shared residences, will have to pay 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 stated that this is very small in terms of the income that should be collected to answer the people's immediate development demands.
Since the current amendment will take into consideration the level of housing, the government's spending on infrastructure and the local situation, so that a reasonable tax will be paid; He said there is no good reason to force landlords to increase rent.
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 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 stated 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 due to the roof and wall tax.
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