Municipality fee glitch needs clarity

We’ve been here before with the glitches over the new charge. Remember Emirates ID?

The travails of homeowners in Abu Dhabi over the recently introduced municipality tax continue. As reported yesterday, a glitch in the property registration system has meant that some owners have been charged the tax – which should not happen as the tax only applies to expatriate tenants – or have been charged based on 3 per cent of the property’s total value rather than its annual rent. These mistakes have caused considerable concern to those involved, but the response from authorities appears to be both understanding and encouraging.

The solution put forward by Abu Dhabi Distribution Company, which collects the charges, was an extraordinary one – a company spokesman said homeowners should amend the value of their property on an official document – and one that seems unlikely to be followed by many. But the utility company has taken the right approach by admitting there is a problem, seeking some temporary workaround, and most importantly pledging to give people time to adjust to the new charge.

That policy in particular means that, in principle, no one who has been billed incorrectly will have their utilities cut off for non-payment for several months. By law, power cannot be cut off during the summer months, which will probably end around the beginning of September.

If ADDC gives a few week’s grace, that will take people into the summer. Still, that will not be a risk many will want to take and there does need to be greater clarity on what exactly is happening.

We have been here before. When the universal Emirates ID was introduced in 2010, residents were meant to apply by the end of the year. But the sheer scale of the task – processing millions of residents’ details – meant that it resulted in long queues, frustration, uncertainty and delays. Extensions were offered and it wasn’t until 2012 that the whole process was completed.

For those who were not around then, such scenes will be surprising. The Emirates ID has become a fixture of life and renewals of the card are now simple and straightforward.

Doubtless the municipality fee will similarly become an established part of life, once these teething problems are resolved. Until that happens, regular communication from the agencies responsible is necessary to make sure this period goes smoothly.