Tanzania To Levy Tax on Empty Land

October 17, 2016 Taxation in Tanzania

Tanzania Levys Empty land TaxDODOMA – Tanzania hopes to discourage land hoarding by charging high taxes on ownership of empty residential land and under-utilised farms.

Over the weekend the Minister of Lands, Housing and Human Settlement Development of Tanzania William Lukuvi launched the government appointed National Land Use Planning Commission, and announced that the government intends to enact a new tax on land hoarding.

The Minister stated that from July next year landowners who do not develop their land will be hit with punitive levels of taxation.

It is hoped that the taxes will encourage landowners to either begin development of residential housing or to sell their tracts of land to other developers who will make use of the space.

Similar taxes will be applied to unused agricultural land, with the taxes to be levied if it is not used for planting, or if the land is not utilised for an adequate level of grazing.

The government believes that the new measures will allow more people to purchase a home, while also raising more funds for infrastructure development and anti-poverty programs.

Tanzania is not the first country to levy a tax on undeveloped land in the hopes of spurring land utilisation, with Saudi Arabia announcing and implementing similar measures this year, to be met with an almost immediate positive effect.