Finance Minister Ken Ofori-Atta has hinted of the ministry’s plans to begin the collection property taxes in Ghana.
According to the Minister, Ghana’s economy is moving to become one that is able to double its revenue to GDP ratio by the imposition of various tax measures including the E-Levy and property taxes.
Speaking during a press briefing on Thursday, May 12, 20222, the Minister said, “I think it’s an exciting period to have a structural solution to revenue mobilization, in a way that we haven’t had before and we are also starting with the property taxes, as a pilot to begin then we become a nation in which we can easily double our revenue to GDP ratio from the 13% to double that. But Nobody likes to pay taxes so it’s always difficult but I think we will all get used to it as we apply the taxes for the citizenry to see.”
There have been calls for government to maximize the collection of property taxes as this has been identified as an avenue that can generate revenue.
Property tax is levied annually by local authorities on the estimated value of the property, depending on the classification of the area where it is located. The rates range from 0.5% to 3%.
According to CUTS international, property rates are a direct tax, meaning the person owning the property is taxed directly. It is also progressive, in that the properties of higher value pay more. However, an estimated GH¢5 billion is set to be realized from property rates if its collection is maximized and the challenges are addressed.