GRA Property Rates Collection is Necessary-OB Amoah justifies
Hon Osei Bonsu Amoah, the Minister of State-designate for the Ministry of Local Government, Decentralisation and Rural Development, has justified the decision that Ghana Revenue Authority (GRA) should collect property tax.
The GRA decision to collect property taxes has attracted criticism for potentially strangling assemblies which are empowered by law to collect property rates.
He explained that for the assurance of cost recovery by the government in providing infrastructure for the collection of property rate, it is implied that a share ratio will be decided upon with the Assemblies.
Answering questions at the Appointment Committee of Parliament, Hon OB Amoah justified that the collaboration with the GRA bodes well for broadening the tax net.
Property rate is a levy imposed on immovable property at a specified rate on the rateable value of a property.
The amount charged varies between specified areas of a district and in respect of property used for different purposes – commercial, residential or mixed-use and area classifications – first class, second class and third class.
Property tax collection had therefore been digitalised, making it easier for Ghanaians to pay.
Now, all property owners are expected to pay for their properties using the government’s cashless system, thanks to the partnership between the GRA and Metropolitan, Municipal, and District Assemblies (MMDAs).
The government has been held accountable for failing to raise much-needed revenue through property taxes.
“The Ministry of Finance has been complaining for some time now that the amount of revenue they expect from property rates administration is a bit disappointing.”
“The assemblies have also not been able to meet the required levels because they have their own challenges, the mode of collection, the billing systems, and enforcement arrangements. We collect peanuts and at times, for years, no assessments are made.
“So this whole arrangement with GRA brings in a certain amount of reform and dynamism, so we reap so much from property rate. This is the best way to go.”
“Some assemblies have said that when it comes to enforcement, they are handicapped. We need a situation where people will be named and shamed and prosecuted. The law has made those provisions and we have let people know this that are why the system has been modernized”, Amoah added.
The nominee, who is also the Member of Parliament (MP) for Akuapem South noted that some Assemblies observed that they were handicapped in the enforcement of property rates.
“We need a situation where people will be named and shamed and prosecuted. The law has made those provisions and we have to let people know this, that is why the system has been modernised,” he said.
Source: expressnewsghana.com
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