Property in Dubai
Under-declaration of housing fee may lead to legal action
The Dubai Municipality has released a lawsuit for residents who under-declare their rents so as to pay a lower housing fee.
An official at the Municipality announced that legal action will be taken against people who provide false information.
The Head of the Marketing and Housing Fee Section, Abdullah Hashim Abdul Gafour said that residents who receive fresh notices through DEWA (Dubai Electricity and Water Authority) bill will have to register online within two to three months.
The minimum fee for those who mislead the municipality is payment of the fees in full – retroactively, he said.
The housing fee, applicable to non-Emiratis, will be five percent of the tenancy contract and is collected through the utility bill. The municipality has begun sending out thousands of notices through the DEWA, asking residents to register online.
Those who fail to pay the housing fee within the grace period, will have their housing fee automatically calculated, based on the average rent index applicable to the area.
According to Abdul Gafour, logistical challenge of collecting tenancy contracts from each resident had earlier prevented them from collecting the fee. But with the new system in place, it automates the process.
The city government has been collecting thousands of tenancy contracts from residents through DEWA, since 2005, Abdul Gafour said.
Dubai Municipality aims to cover the estimated 300,000 residential units in Dubai to collect housing fee by 1st January 2011. However, the unoccupied units will not be charged a housing fee, he said.
Posted on 11/6/2010