South Africa introduces tax incentives to accelerate housing delivery
Thématique :
sud afrique
The 2009 Budget would maintain the infrastructure focus of alleviating backlogs in the delivery of a number of areas, including the provision of low-cost housing.
National Treasury stated in its Medium Term Budget Policy Statement that new tax incentives, in the form of accelerated depreciation, would now encourage employers and landlords to increase the stock of housing units valued at less than R200 000, excluding land, as well as that of apartments valued at lest than R250 000.
Government expected the incentive to increase access to housing for low- and middle-income families.
In addition, government would also be extending the tax incentives related to urban development zones for five years.
National Treasury noted that these zones provided accelerated depreciation for new and refurbished buildings, and that depreciation allowances for new buildings in urban development zones would be enhanced through this extension.
The tax incentive relating to these zones was initially set to expire in March 2009.
Meanwhile, government would spend R44,7-billion on housing subsidies through its integrated housing and human settlements grant over the next three years.
The grant has been increased by R3,7-billion for the three years in order to raise the value of housing subsidies in line with higher inflation.
Government had spent R49-billion on housing grants between 1994/5 and 2007/8, with 2,6-million houses having been built.
However, 1,8-million families were still living in informal dwellings.
Government was aiming to eliminate informal housing settlements by 2014.
National Treasury stated in its Medium Term Budget Policy Statement that new tax incentives, in the form of accelerated depreciation, would now encourage employers and landlords to increase the stock of housing units valued at less than R200 000, excluding land, as well as that of apartments valued at lest than R250 000.
Government expected the incentive to increase access to housing for low- and middle-income families.
In addition, government would also be extending the tax incentives related to urban development zones for five years.
National Treasury noted that these zones provided accelerated depreciation for new and refurbished buildings, and that depreciation allowances for new buildings in urban development zones would be enhanced through this extension.
The tax incentive relating to these zones was initially set to expire in March 2009.
Meanwhile, government would spend R44,7-billion on housing subsidies through its integrated housing and human settlements grant over the next three years.
The grant has been increased by R3,7-billion for the three years in order to raise the value of housing subsidies in line with higher inflation.
Government had spent R49-billion on housing grants between 1994/5 and 2007/8, with 2,6-million houses having been built.
However, 1,8-million families were still living in informal dwellings.
Government was aiming to eliminate informal housing settlements by 2014.
