# DEWA Housing Fee



## cautious_mover (Dec 9, 2009)

Well having just moved apartments, (albeit in the same building) a nasty little surprise awaited me when I viewed my new DEWA bill. Yep the dreaded Housing Fee.

The Housing Fee equates to 5% of annual rent, divided over 12 months. In my case its 5 times the actual energy costs!

This wasn't on my previous contract but seems to be slowing creeping in to anyone that recently moved or had to apply for a new DEWA account....


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## Kayote (Nov 12, 2013)

If the amount if as per the equation you have rightly mentioned, then, that is what it is. This has no relation to the actual usage charges.

If it wasn't in your previous contract, consider that to be your good luck and some money saved.


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## cautious_mover (Dec 9, 2009)

Kayote said:


> If the amount if as per the equation you have rightly mentioned, then, that is what it is. This has no relation to the actual usage charges.
> 
> If it wasn't in your previous contract, consider that to be your good luck and some money saved.


Yes I am aware there's no correlation between the amount of energy used and the 5% of contract, I was merely pointing out that the fee is a hidden way of extracting a commission of every rental contract that is signed.


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## BedouGirl (Sep 15, 2011)

cautious_mover said:


> Yes I am aware there's no correlation between the amount of energy used and the 5% of contract, I was merely pointing out that the fee is a hidden way of extracting a commission of every rental contract that is signed.


It has nothing to do with that. It's a fee to the municipality to cover rubbish removal, upkeep of roads, street lighting, that kind of thing.


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## Kayote (Nov 12, 2013)

Can this be called tax?

In similar lines - knowledge fee for every government transaction and salik.


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## BedouGirl (Sep 15, 2011)

Kayote said:


> Can this be called tax? In similar lines - knowledge fee for every government transaction and salik.


Yes, it's what you can call indirect taxation.


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## Chocoholic (Oct 29, 2012)

Of course it's a tax. Basically you have to look at it as the Dubai version of the UK's council tax.

DEWA are catching up to everyone now. People should be thankful it's not being backdated.

My actual usage is half the amount of my housing fee - but what to do, it is what it is. The money for building roads, street lights, upkeep of communities has to come from somewhere.


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## vantage (May 10, 2012)

as far as a comparison with the UK Council tax, it is a far better, more efficient system, too.
- 100% of it is collected (in the UK, there's a huge amount spent on collections)
- It is a far more transparent system - 5% of rental value (in the UK it is based on property prices in 1981 or something ridiculous, and varies from Council to Council)


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## w_man (Apr 16, 2010)

vantage said:


> as far as a comparison with the UK Council tax, it is a far better, more efficient system, too.
> - 100% of it is collected (in the UK, there's a huge amount spent on collections)
> - It is a far more transparent system - 5% of rental value (in the UK it is based on property prices in 1981 or something ridiculous, and varies from Council to Council)


Not sure how it's done in the UK but the housing fee is similar to a property tax in Canada. This is paid by the OWNER and not the renter. 

The Owner may choose to include the cost of the tax in the monthly rent if the market allows it. Renters aren't responsible for paying government taxes on a property they don't own. 

It makes no sense!


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## vantage (May 10, 2012)

w_man said:


> Not sure how it's done in the UK but the housing fee is similar to a property tax in Canada. This is paid by the OWNER and not the renter.
> 
> The Owner may choose to include the cost of the tax in the monthly rent if the market allows it. Renters aren't responsible for paying government taxes on a property they don't own.
> 
> It makes no sense!


In the UK, it is paid by the 'occupant'.

And in reality, it does make sense. The occupant is the one using the bins, streetlights etc that it is theoretically destined for.

Quite why anyone would complain about this, i'm not sure. The idea that you can live 100% tax free, even here, is pretty ridiculous.

My Council tax in the UK was the same as my Municipality 'fee' here. My rent here is 2.5X what i am getting for my property back home, so in comparison, it's a cheaper tax here, by value.


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## FlexRay (Feb 12, 2013)

Its a hidden tax obviously

If it was truly for rubbish removal, upkeep of roads bla bla bla it would be calculated and fixed for everyone in that area...

But its not, so im probably paying alot more than my neighbour cause he has renewed his contract 3 times and is paying two thirds a what i pay for rent

Its TAX...!


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## vantage (May 10, 2012)

FlexRay said:


> Its a hidden tax obviously


there's nothing hidden about it!


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