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28 March 2024

DMCC challenges municipality's housing fee

Jumeirah Lake Towers is a free zone area, says DMCC. (SUPPLIED)

Published
By Anjana Kumar

The Dubai Multi Commodities Centre Authority (DMCCA), the master developer of Jumeirah Lakes Towers (JLT), said it is in talks with "appropriate" authorities to waive the housing fees levied by Dubai Municipality (DM), citing it as a free-zone area.

However, Dubai Municipality insists housing fees are levied on free zone areas as well.

In an e-mailed response to Emirates Business, a DMCCA spokesperson 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."

Abdullah Hashim AbdulGhafoor, Head of Marketing and Housing Fees Unit, Finance Department, Dubai Municipality, said housing fees are levied on free zone areas and they are "not exempted from housing fees".

Tenants have to pay five per cent of their total annual rent as housing fee, while home owners pay 0.5 per cent per annum of the total property purchase price.

A resident of Dubai Silicon Oasis, a free zone, on conditions of anonymity, said they are not paying any housing fee to DM.

'Earlier, in some cases, residents were paying housing fee, but after we informed the DSO Authority, the charges were waived," he added.