Tanzania and NMB in land rent partnership

Dar es Salaam, Tanzania:

Land owners can now pay their rent and other levies through NMB Bank payment channels, thanks to a partnership reached between the government and the bank.

The bank’s alliance with the Ministry of Lands, Housing and Human Settlements is expected to take the tax payment closer to the people, considering the wide network of the lender, Lands minister Angeline Mabula said during the announcement at the bank offices. 

The bank has a relatively wider market outreach that comprises of 228 outlets, over 17,000 agents and digital channels.

Under the arrangement, the bank will also be providing the rent assessment, she said.

“In the current financial year, the ministry targets to collect Sh250.1 billion in land rent but so far we have managed to garner only Sh72 billion,” Dr Mabula told reporters.

“Through this partnership, we expect to improve the rate of collection, which currently is not very convincing, but because NMB Bank is almost everywhere in this country, payment of the rent has been made easier,” she said.

Dr Mabula also challenged those who owe the government land rent to use this development to clear their arrears and the grace period accorded to them by the head of state not to pay the interest for untimely remittances.

President Dr Samia Suluhu Hassan has granted forgiveness to defaulters of land rent the one percent penalty if they paid the principal amount between July and December this year.

The minister said, to date the response has been lackluster hence the need to seek ways to address the challenge.

According to her, seeking strategic partnerships is part of executing the budget of the ministry this fiscal year, which include collection of Sh250.1 billion land rent and implementing other pivotal sectoral projects like the land surveying and planning undertaking.

Dr Mabula said statistics show that so far only 2,819 land owners have exploited Dr Samia’s grace period leading to collection of some Sh11.99 billion as principal amount. She said the default interest forgiven so far amounts to about Sh6.94 billion.

NMB acting CEO Filbert Mponzi, said the partnership augurs well with national building efforts. He said the bank through this new alliance continues to lead in forging strategic development partnerships with the government.

“Today, through this partnership we are showing how well prepared we are to collect land lent and other levies for the ministry through our different channels notably NMB Wakala, NMB Mkononi, NMB Direct and the 228 branches,” he said.