The majority leader in parliament has intimated that the government of Ghana will step up the collection of property rates in 2023 as a strategy to increase its tax revenue for development.
The government is taking this action, says Hon. Osei Kyei-Mensah-Bonsu, who is also the Minister for Parliamentary Affairs, to generate revenue, which will primarily benefit local governments.
He believes that many people and organizations in the nation own large homes yet frequently underpay or completely ignore their tax obligations to the government.
Speaking on Kumasi-based Akoma FM, Hon Osei Kyei-Mensah-Bonsu backed his argument with statistics from the National Statistical Service.
“According to the population and Housing census, there are about 8.5 million houses in the country”, he quoted.
“In most of our regional capitals like Kumasi and Accra, looking at buildings that belong to individuals, some are worth more than a million dollar some of them more than two million dollars when you do valuation.
“With regards to commercial houses like hotels and others, you can get some valued at more than 50million dollars some close to 100 million dollars. How much do they pay on property rate?” he argued.
According to him, the move by government will go a long way to help the country because that is one of the main revenue sources for most governments in developed countries.
“When you go to developed countries, the local councils develop their area with money generated from property rates,” he revealed.