NNC Low-Cost Houses Plan Must Be for Real
The National Housing Corporation (NHC) is working on modalities that will enable it to start constructing low-cost houses to be sold for between Sh20 million and Sh25 million each. This is good news to Tanzania's low-income earners who have always believed the corporation was established for the purpose of providing quality and affordable accommodation to people in that income category.
The NHC statement comes just weeks after Lands minister William Lukuvi, reportedly ordered the corporation to stop initiating new projects for high-end buyers and instead concentrate on finishing the existing projects before shifting to construction of houses for low-income earners. Now this gives us a reason to worry.
Firstly, reasons for selling NHC's houses expensively are known. They range from the 18 per cent Value Added Tax (VAT) on the houses, taxes on construction materials as well as the fact that the corporation operates on loaned money.