The Minister of Local Government, Religious and Chieftaincy Affairs, Ahmed Ibrahim, has said the government has decided to abolish the centralised collection of property tax by the Ghana Revenue Authority(GRA).
He said the decision reaffirmed the government’s commitment to fiscal decentralisation and empowering Metropolitan, Municipal and District Assemblies(MMDAS).
The Minister made the announcement in a keynote address at the Urban Property Tax Workshop organised by the Africa Cities Research Consortium in collaboration with People’s Dialogue on Human Rights Settlement and Local Government Network(LOGNET) reports the Ghana News Agency (GNA.
The three-day workshop brought together city managers, policymakers, and international experts to strategise on improving property tax systems in Ghana and across Africa.
Key focus areas included, adopting digital tools for efficient tax administration, enhancing local capacity for revenue mobilisation and ensuring taxpayer confidence through visible service delivery.
The Minister said the centralisation of key revenue items for the assemblies like the Property Tax had denied them significant Internally Generated Funds(IGF) thus affecting delivery of essential services to local areas.
This centralised collection of property TAX, according to the Minister, undermined decentralisation of fiscal policy measures of the assemblies.
“The President has been emphatic; we are not going to centralise property rate collection. The suspension of the GRA’s vendor arrangement in the 2023 budget was just the beginning. We are now fully returning this responsibility to the MMDAs to enhance their revenue mobilization and service delivery,” he said.
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