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Ethiopia: Jimma to Increase House Rent
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Addis Fortune (Addis Ababa)
17 September 2007
Posted to the web 18 September 2007
Wudineh Zenebe
Addis Ababa
A month into their tenure, the 13member Cabinet of Jimma town is set to increase house rents under its jurisdiction. The implementation of the new increment is planned to be effective during the fiscal year 2007/08.
The new order that calls for the rental increment is one of the Cabinet's first major moves. However, prior to the implementation of this increase, the Cabinet sought to hold a public consultation with town residents, as well as with the stakeholders.
The new administration gives two reasons for the decision. The first one of which is part of the effort to create conducive conditions for the town to grow and to be consistent with the criterion that the federal budget subsidiary programme to the regions would be determined based on the level of efficiency in terms of revenue collection from tax.
The authorities believe that this latest strategy will raise the subsidy budget they secure from the federal government as the House of Federation changed its formula in determining budget subsidies from the federal government to regional states allocating federal subsidies based primarily on regional states' capacity to collect tax and their level of expenditure.
Although, there are identified sources from which the city administration would be able to generate its revenue, however, the amount of money being collected annually is too low.
The 10 million Br revenue collected last year was far below the target.
The new administration is determined to collect about 25 million Br mainly from an increased rate on rental houses during the fiscal year 2007/08.
"Most of the residents in Jimma pay reduced rates for the kebelle houses and thus these residents would not be drastically affected by the increment," Kefyalew Ayanna, deputy mayor of Jimma, told Fortune.
Under the administration of Jimma town, there are 27 kebeles containing between 300 and 1,300. The rates of these houses vary depending on the size and condition of the houses. Let alone those tenants who relatively pay more than the others, even those who pay as small as 1.5 cents per month do not pay timely, sources disclosed.
Established in 1838 (EC), Jimma is a town whose growth is not as big as its age; provision of infrastructures and facilities are low.
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Presently, with 160,000 residents, Jimma Zone has been structured under 13 districts and 264 kebeles. Although, Jimma was once an industrial town, it is now known as a home of the coffee plant.
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