Dewa - housing fee!?

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Dewa - housing fee!?


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Old 4th January 2011, 07:54 AM
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Default Dewa - housing fee!?

I got my first DEWA bill and I saw Housing fee AED 605.

Housing fee would be charged monthly at 5% of the annual rent.

I called DEWA and they advised me to call municipality at 800-900 and register online then visit the main municipality office with my tenancy contract so that they dont over charge me. I should be paying AED 292 not AED 605

Hmmmmm....are we being asked to pay taxes now?

What are your thoughts on this?

If it doesn't show on your bill now, it will start soon.

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Old 4th January 2011, 07:59 AM
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This has been around for at least 3 years now, and they are starting to take it more seriously now. Its 5% of the total annual rent divided into 12 monthly installments.

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Old 4th January 2011, 10:18 AM
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Dubai has had taxes for years now, they call them fees and service charges but everyone knows what they're for.

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Old 4th January 2011, 10:22 AM
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True. Some of my colleagues haven't got it on their bills yet, and when I called municipality they informed me that it will be applied on everyone from now on

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Old 5th January 2011, 07:00 AM
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My husband asked around at his offiice and was told (though i'm unsure the validity) that the 5% surcharge is so the local Emiratis don't have to pay for their water and electricity.

Interesting....but again, who knows. but 5% is A LOT!

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Old 5th January 2011, 07:02 AM
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For sure it's a lot, especially if you're paying high rent

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Old 5th January 2011, 10:45 AM
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Of course it's so the locals don't have to pay for their utilities. Have you seen how some locals waste water and electricity? You have to wonder how they manage to do that.......by charging expats through the roof.

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Old 5th January 2011, 10:51 AM
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Quote:
Originally Posted by Moe78 View Post
Of course it's so the locals don't have to pay for their utilities. Have you seen how some locals waste water and electricity? You have to wonder how they manage to do that.......by charging expats through the roof.
I wouldn't necessarily agree that we are charged through the roof - on the contrary i feel the charges are quite reasonable.
The price should reflect the cost of producing electricity/desalinating the water and to the extent possible should not be subsidised as it leads to wastage (like in the case of locals) of what are essentially non renewable resources (e.g., the gas burnt to produce these)

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Old 5th January 2011, 11:40 AM
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Errr so you actually know the actual cost of doing this? If we are offsetting the excessive use/waste of the locals then expats are paying through the roof. In a supposedly tax-free nation, you can't say the prices aren't getting excessive!

Also why exactly are we paying 5% housing fee? These things are usually charged on owners, kind of like taxes.

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Old 5th January 2011, 12:02 PM
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Quote:
Originally Posted by Moe78 View Post
Errr so you actually know the actual cost of doing this? If we are offsetting the excessive use/waste of the locals then expats are paying through the roof. In a supposedly tax-free nation, you can't say the prices aren't getting excessive!

Also why exactly are we paying 5% housing fee? These things are usually charged on owners, kind of like taxes.
Obviously I do not support the housing fee - hits my pocket as well
Just saying that the price of electricity/water (not counting the housing fee is not particularly high either. If my understanding is correct, the price is 20 fils/kWh for electricity which equates to about US$ 55/MWh. trust me, that is not particularly high.
To put it into perspective, even people in India (those who actually pay) pay similar tariffs or higher than this, when the salaries/cost of living in India are much lower

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