Government Returns Property Tax Collection to Local Authorities
The Minister for Local Government, Religious and Chieftaincy Affairs, Ahmed Ibrahim, has announced the government’s decision to end the Ghana Revenue Authority’s (GRA) role in collecting property taxes. This move is aimed at reinforcing fiscal decentralisation and giving Metropolitan, Municipal, and District Assemblies (MMDAs) greater control over local revenue.
Speaking at a three-day Urban Property Tax Workshop hosted by the Africa Cities Research Consortium and partners, the Minister noted that centralised collection had deprived local assemblies of critical internally generated funds, hindering their ability to provide basic services. He stressed that allowing MMDAs to manage property tax would strengthen their financial independence and service delivery.
Mr. Ibrahim stated that the suspension of the GRA’s vendor arrangement in the 2023 budget was the first step, and full control would now return to local governments. He outlined future measures to support decentralisation, including the revival of municipal bonds and a new Local Government Borrowing Act to help assemblies access capital for development.
He called for stronger cooperation among local authorities, the Land Valuation Division, and private entities to modernise land valuation and boost property tax compliance through digital innovation, transparency, and active citizen involvement.
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