Ghana’s Finance Minister, Ken Ofori-Atta has thrown to the dogs, allegations which suggests that the government has paid little attention to the Property Tax Regime to protect the rich.
Although Property Tax is considered an important area through which the government can generate revenue, it has been overlooked.
When the minister was being asked in an interview regarding the government’s neglect for property taxes, he said the government is interested in all taxes and is working to generate in the right revenue for the state.
“I am not sure all that we have done has been to the benefit of the middle class or wealthy people. I am not going to let people go off because they are wealthy, I need that money. I will get it done in a hurry” Mr. Ofori-Atta said.
About Property Tax
Property taxes in Ghana, also known as property rates, which is being paid on immovable property, is collected annually under the direct supervision of the Ghana Revenue Authority (GRA). This tax is levied annually by local authorities on the estimated value of the property, depending on the classification of the area where the property is located.
Additionally, property rates range from 0.5 per cent to 3 per cent. There are also different types of property tax, namely: property rates, ground rates and the actual property tax.
In the past, there have been complaints regarding the current regime which sees owners of multi-million-dollar properties paying property tax as little of about GHS 2, 000 annually, whereas elsewhere, property owners pay much higher amounts for a similar property.
In effect, they have called for a system that will empower and equip special officers at the various Metropolitan, Municipal and District Assemblies across the country to effectively collect the appropriate property rates for the state.
Retrospection of the Mid-year Budget review
Following the presentation of the 2020 Mid-year budget review which was presented to Parliament on Thursday, July 23, 2020, concerns were raised about the government’s silence on taxation. Also, they worried about how the government intends to fund its various programmes amidst the COVD-19 pandemic which has resulted in the recouping of adequate domestic taxes for the country.
But according to the Finance Minister, the government will fund its ambitious GH¢100 billion Ghana Cares Obaatanpa Programme, seeking to transform and modernize Ghana’seconomy and other initiatives through Foreign Direct Investments and Private-Public Partnerships.
He further added that the government is seeking to introduce a policy that will, in the long run, ensure that funds are first sourced locally for domestic projects before external sources are considered.
