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Dewa - housing fee!?

31K views 19 replies 13 participants last post by  Tsu Tsu 
#1 ·
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.
 
#8 ·
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)
 
#9 ·
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.
 
#10 ·
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
 
#12 ·
A friend of mine who has lived here for a decade mentioned that this is a very old law going back to the 80's but was never enforced in the past. Perhaps the lower rents witnessed in the city till early 2000 was the reason why no body paid attention to it.

However, things have changed and guess we have to come to terms with paying the 5% charge. The interesting thing is Dewa sent out reminders about 2 months back asking people to register their rental amount with the municipality and the 5% charge should only be applied on that amount. If you did not register, they may then apply the 5% on the approximate rental rates fo your area which may not necessarily be beneficial for you.
 
#14 ·
We hope to get a 4 B/R villa with a medium size garden ( Meadows, Arabian ranches,etc..). Expecting to pay about AED 240,000.00. Would the following DEWA costs estimates be ok.
5% Tax on rent AED 1000, DEWA AED 2000.
Will there be any other taxes/chargers which we would have to pay . I am trying my best not get suprised!!
 
#18 ·
I made my registration on dm.gov.ae and on next DEWA bill I got housing fee 5% of tenancy contract divided by 12. Later on I renew my tenancy and got lower price and wanted to update dm site.

First, I go to dm site again, and I got "duplicate" error. So the system is only for first registration. Then I call the hotline 800900, and I was suggested to go to DEWA head office to update the housing fee. Yes, only DEWA head office which next to Wafi.

I went to DEWA head office, and he asked me about DM id when I did registration online. Hmmm... I don't note it down. Then he suggested me to go to DM and come back to DEWA later on.

I'm not very sure how to proceed later on. Seems it's not also clear for the DM's customer service as well on procedure to update housing fee.
 
#19 ·
Could anyone confirm this? If your company/organization was not a FreeZone company and were require to pay DED at the time of trade license renewal (annually) as well as include copies of its employees tenancy contracts (for those residing in Dubai), could you claim an exemption on housing fee as avoidance of 'dual' payment?
 
#20 ·
Hi.
It finally came to me.
I am living in a rental flat of 2 BR at JBR - small family only with my wife.
Even before it had been somewhere around AED 500 - 550; already been expensive for me (till last Oct it had been only about 300...increasing!). Last month bill was AED 960 in total, that extra virtually seems to be a kind of residential tax. I will further clarify to DEWA/DM likewise you did, too.

In Abu Dhabi how is it, by the way? I may need to re-consider pro's and con's for which city I should live in since my job is in A.D., the petrol will be becoming another factor for me. And more than 2hrs drive every day...

Cheers
 
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