The ANC has revoked its initial proposal to provide tax incentives to beneficiaries of state housing as part of its plan to overhaul the state’s provision of mass free housing.
Conceding that the state’s provision of 4.8-million free houses to the poor has failed to deal with the housing backlog, the ANC instead put forward a wide range of new proposals. These include the targeted provision of housing, upgrading informal settlements and ramping up initiatives to encourage people to build their own homes instead of relying on the state.
The scheme to provide tax incentives to housing beneficiaries was mooted in April during the drafting of the ANC’s policy proposals ahead of the party’s policy conference in July. However, it has been removed from the ANC’s final draft social transformation document, which was released on Friday.
The proposals, had they been adopted by the ANC, would have required the approval of finance minister Enoch Godongwana, who is responsible for making adjustments to the tax system, such as introducing or removing tax incentives.
“There is currently no specific tax incentive for individuals to purchase a house,” the National Treasury says.
Two years ago then finance minister Tito Mboweni, “increased the tax-free threshold for transfer duties [applied upon the purchase of property] to R1m. Any purchases of properties below this value will not be required to pay transfer duties, which will assist with the affordability of purchasing lower-value houses,” the Treasury says.
As part of the shift in policy, the party asked delegates who will be attending the July conference to devise measures to “ensure that all of society assumes and takes responsibility for the provision and development of housing in the country and not only the government and state”.
Other proposals include the launching of a housing voucher programme, digitising the household waiting list and launching a programme to remove aadobe houses and those with asbestos roofing. However, the document is slim on detail, with the ANC expected to expand on its proposals this week.
Government policy since the dawn of full democracy has been to provide free mass housing through the national department of human settlements and the provinces. The radical move to replace free mass housing with state housing for targeted groups comes as the former liberation movement moves to catch up with the housing backlog caused by rapid migration to urban areas.
“Despite the ANC government’s rapid human settlements development programme, we have not been able to arrest the housing backlog and urbanisation. Uncontrolled migration into and within villages, towns and cities is making it difficult to meet the obligation to adequately house our people,” the party says.
Property law expert Tanveer Jeewa says to ensure that the backlog of housing commitments is cleared, the state should adopt a programme that addresses new targeted communities, such as military veterans and people with disabilities.
“With the aftereffects of the Covid-19 pandemic, the housing backlog is increasing, and real change will be needed to make sure that the ANC’s proposed amendments can be smoothly incorporated,” she says.
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.