According to William Owusu Demitia, a Senior Associate Consultant at Ali-Nakyea & Associates, this would help government identify key issues that has to be addressed before a nationwide implementation.

As part of measures to improve domestic resource mobilization, the Finance Minister during the 2018 budget reading announced that new tax reforms to be introduced by government this year will see an upward review of property rates as well as the intensification of its collection.

Speaking to Citi Business News, Mr Owusu Demitia said the implementation of the property rate is a step in the right direction.

“Renewed zeal for the collection of the property rate is welcome. Government should however take its time in implementing it. Government needs to get the valuation right and also get the public to understand the need for the property rate,” he advised.

Property income taxation has long been seen as an area largely neglected by Ghana’s tax authorities.

Enforcement of the tax has been weak, with property owners either not paying at all or deferring payment for years.

There’s also a general perception that properties are grossly undervalued by the assemblies.

–

By: Bobbie Osei/citibusinessnews.com/Ghana

The post Pilot property tax rate before implementation—Tax Analyst appeared first on Citi 97.3 FM - Relevant Radio. Always.

The Finance Minister during the 2018 budget reading reiterated that the constitution enjoins MMDAs to mobilize revenue through sources like the property tax, collection of which is low due to insufficient valuation capacity and the high cost of valuation.

Property income taxation has long been seen as an area largely neglected by Ghana’s tax authorities.

[contextly_sidebar id=”rAypflGR99kRLmrOp3DbJ8uUB8bywfUm”]Enforcement of the tax has been weak, with property owners either not paying at all or deferring payment for years.

Some property owners who spoke to Citi Business News pointed out that even though they were willing to pay the tax, the authorities have not educated the citizens on how to pay and where to pay.

“If they simplify the payment system for us we will pay. I want to pay my property tax as a citizen but I don’t even know how to go about it. I think there must be proper education,” a property owner in Accra said.

Another said, “I’m aware of it but I don’t know the rate. The difficulty is that people in less developed areas find it hard to pay the property tax because they’ve not been provided with basic things”.

Meanwhile, a property owner who pays his tax maintained that “Everybody should do well to pay the property rate tax. I always pay mine. I paid GHC 100 this year”

Of all the MMDA internally generated funds mandated by the Local Government Act of 1993 (Act 142), property taxes provide the surest source of revenue if properly managed. However, numerous challenges that inhibit adequate generation of revenue from real properties include poor database of real property inventory, obsolete valuation lists, inadequate and unskilled staff among others.

–

By: Bobbie Osei/citibusinessnews.com/Ghana

The post Most property owners unware of property tax appeared first on Citi 97.3 FM - Relevant Radio. Always.