Construction of low cost and affordable houses remains a challenge in the country due to high taxes charged on building materials and Value Added Tax (VAT).
The Public Service Pensions Fund (PSPF) Director of Investments, Mr Gabriel Silayo said in Dar es Salaam on Thursday that these factors have for years now made the concept of affordable houses a mere dream.
Mr Silayo was speaking during a seminar organised by the fund to journalists from various media houses to explain the funds health and its role in improving the lives of its members and the general public.
He also noted that the fund has already constructed 666 houses in Dar es Salaam and upcountry regions with the prices starting from 61.3m/- for two bed room houses.
“The two bed rooms’ houses are sold at 61.36m/- and this is the lowest price. The price would have been pegged at 52m/- if VAT was to be removed,” he said.
He added that prices would have been even lower if the building materials were to be tax exempted.
“Seeing this problem of housing and the issue of many ordinary people failing to afford them, we have formed in collaboration with National Housing Corporation and other pension funds an umbrella organisation known as “Watumishi Housing” under which we will implement a low cost house scheme,” he said.
Mr Silayo noted further that the umbrella organisation will start benefitting public servants and later reach out to people in private and informal sectors.
Earlier, PSPF Director General, Mr Adam Maingu said that the fund has grown from strength to strength with the starting capital of 30bn/- in 1999 to 1.25trn/- now.
“We have undergone various reforms and now we have members from all walks of life,” he said.
He noted that the fund has 300,010 members and 4007 others in the special scheme for members in private and informal sectors and voluntary members dubbed PSPF Supplementary Scheme.
Mr Maingu added further that the fund has been doing continues study to determine its health, put up investments, observe good governance and work on stakeholders feedbacks.
He noted that some of the challenges faced were delay in sending contributions and failure of some members to follow proper procedures in acquiring their pensions.
By ABDULWAKIL SAIBOKO, Tanzania Daily News
