Taxation Expert, Geoffrey Ocansey said, there is the need to revalue Ghana’s Property rate charges to correspond with modern trends.
Finance Minister Ken Ofori Atta is expected to present the government’s Budget Statement and Economic Policy for the year 2022 in parliament today, Wednesday, November 17, 2021
Speaking on Plan B FM ‘Nkosuo Nsem’ with Ohene Addo, Mr. Ocansey stated that Ghana earns very little from property tax, as only a few property owners pay the tax, however they do not pay the right taxes, thereby affecting the government’s revenue targets.
“To a very large extent, this class of tax-avoiders or evaders is the same people who own significant real estate in Ghana, residential, commercial, and industrial properties as well as large tracts of land in various areas. Most of these well-to-do and large-living persons reside in the best or the most affluent enclaves in our capital city; As we may notice, the collection of rents by property owners allows them to increase their wealth without contributing anything much to the productive efforts of society. As the population grows, so too does the demand for land or property, therefore, forcing rents and property values to rise ever higher”
“In addition, increases in property values, resulting from publicly-funded infrastructure developments, such as roads, street lights, sewerage, drainage and public transport systems, unduly benefit property owners at the expense of the community at large. Such unearned gains from property ownership encourage speculation in land and property, pushing prices ever higher, while exposing the economy to inflationary spirals. This is why economists recognize that a land tax or property tax is definitely an economically efficient and more equitable way to redistribute the revenue mobilization efforts of government,” he indicated
He also recommended the enforcement of tax laws, true accountability on tax revenues and an urgent review of tax treaties and exemptions which, according to him, are being abused by some multi-national institutions and certain individuals.
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