Pulse.com.gh logo
Go


Revenue Property tax is an unexploited revenue source in Ghana – tax experts

Ask economists around the world about the most efficient kinds of taxes are and you sure to find out that property taxes will be high on the list.

  • Published: , Refreshed:

Ask economists around the world about the most efficient kinds of taxes and you sure to find out that property taxes will be high on the list.

Professor Ali Nakyea, a Taxation Law lecturer at the Ghana School of Law has called on government to consider raking revenue out of property tax.

Property tax in Ghana is levied annually by local authorities on the estimated value properties, depending on its location.

READ ALSO: Newmont Ghana is Ghana’s second best taxpayer for 2016

The rates on property tax ranges between 0.5 to 3.0%. Experts believe this can be an outstanding source of revenue for government.

According to the Ghana Revenue Authority, property tax and rent contributed 0.03% to Ghana’s GDP in 2014.

Comparatively, in 2014, taxes on property in the UK were worth 4.2% of GDP, while the United States recorded a 3% in the same year.

Screen-Shot-2015-02-16-at-07.50.56.png play Revenue from property tax in UK and US (2014)

Yet most African countries raise relatively little money form taxing property.

Professor Ali Nakyea tells Pulse Business that, although property tax is more growth friendly, it has been neglected by the country's tax authorities.

He explains that, in Ghana’s capital city, Accra, the property rate for Residential Class 1A, an area that covers Airport Residential Area, East Legon, Ridge and Roman Ridge, is 0.17 percent

But in reality, properties in these areas are often undervalued, and owners of GHC1 million homes either pay lower than expected rate or default payments.

He is also urging the Ghanaian government to put in place policies that will generate funds for the country as government has scrapped lot of taxes.

READ ALSO: Here are the taxes Nana Addo will abolish in his government

Meanwhile economist Dr Baah Boateng at the University of Ghana has also raised concerns about the need for government to prioritize rent tax.

When you walk around Accra and other parts of Ghana, all the new high-rise buildings coming up, if we are able to efficiently tax them, it will inure to the country’s benefit” he added.

Do you ever witness news or have a story that should be featured on Pulse Ghana?
Submit your stories, pictures and videos to us now via WhatsApp: +233507713497, Social Media @pulseghana: #PulseEyewitness & DM or Email: eyewitness@pulse.com.gh.

Recommended Articles

Recommended Videos




Top Articles

1 Taxes In Ghana Don't rejoice; VAT has been hiked through ‘backdoor’ –...bullet
2 Kwabena Duffuor Official: Duffuor’s assets not being auctionedbullet
3 2018 Budget Review Prepare to pay 35% tax if you earn 10k and abovebullet
4 Investment banks in Ghana Top 5 investment banks in Ghana and why...bullet
5 Menzgold Ghana Don't deposit money with Menzgold – BoG cautions...bullet
6 Uche Ofodile Captain Planet’s wife heads MTN Liberiabullet
7 Nigeria To The World Ex-Nigerian Minister appointed to...bullet
8 Education Top 5 private high schools in Ghana according to...bullet
9 Salaries In 2018 Here are the dates public workers will...bullet
10 Ban On Fishing Gov’t isn’t wicked – Prof Boatengbullet

Top Videos

1 Forbes 2018 Africa's billionaires rich listbullet
2 New Discovery Ghana discovers new mineral, lithium in commercial...bullet
3 Dr Joseph Siaw Agyepong Nobody can collapse my company – JOSPONGbullet
4 Support Finance minister buys Kantanka carbullet
5 Tech 6 reasons you should buy an iPhone SE instead of any of the...bullet
6 Plane Crash Starbow suspends operations following plane crashbullet
7 Money Alert Meet Africa's richest womanbullet
8 New Phone Nokia’s MWC 2018 Event in Under 10 Minutesbullet
9 Bozoma Saint John 10 quotes from Uber top official,...bullet
10 New Phones Nokia MWC 2018 Event in 5 minutesbullet

Business