The Housing Fee By The Municipality Challenged By DMCC
Since the Jumeirah Lake Towers property is being built in the free zone, the master developer wants the municipality to waive off the housing fee on this property.
Jumeirah Lake Tower’s master developer, DMCCA (Dubai Multi Commodities Center Authority) said they were in talks with relevant personnel in Dubai Municipality over wavering of housing fees since the property is being built in an area categorized as free zone.
On the other hand, Dubai Municipality stands by the fact that the housing fee cannot be waved off even in this region.
The DMCCA spokesperson, in a response sent on email said “The DMCC is a free zone area and under the terms of its enabling decrees, the municipality cannot impose fees on free zone residents. DMCCA has taken up the matter of random imposition of the DM housing fee on JLT residents with the appropriate authorities.”
The Head of Marketing and Housing Fees Unit in the Finance Department of Dubai Municipality, Abdullah Hashim Abdul Gafoor, said that the free zones are not exempt from housing fees.
While owners have to pay 0.5% of the total property value as housing fee each year, tenants have to pay 0.5% of the total annual rent towards this.
A person staying in Dubai Silicon Oasis that is another property built in the free zone, on the condition of anonymity said that Dubai Municipality was not collecting any housing fee from them.