Deputy Minister for Local Government and Rural Development, Mr. Osei Bonsu Amoah has denied assertions the collection of property rates has been centralized contrary to claims.
According to him, the government has only directed the Ghana Revenue Authority (GRA) by way of policy as captured in the 2022 Budget, to assist the Assemblies in the collection and not to take over and argued the Budget statement is very clear on that.
Contributing to a statement that stood in the name of the member for Agona East, Queenstar Maame Opokuah Sawyerr, the Deputy Minister indicated there are three policy statements in the Budget: First, the need to have a uniform platform to assist the collection of property rates; second, to continue with what the Ministry and GIZ have been doing regarding providing software for the assemblies to enhance the collection; and third, for the GRA to assist in the collection of the property rates.
The Ministry, he said, has had several meetings with the GRA, which has led to the formation of a technical committee and some modalities agreed upon.
He stated a final meeting is planned where final decisions will be taken for the piloting of the programme.
He said, “ It is the belief of the government that if we are able to guide it through, it will go far in achieving what needs to be done as far as property rates collection is concerned.”
Mr. O.B. Amoah stated that there is a need to ensure property rates collection commences with the identification and determination of values of properties in major cities and towns.
He stated the rates imposed on properties are generally very low hence the need for upgrade and stressed beyond an assessment of the properties, the state should be able to pursue collection instead of prosecuting those who default in payment.
He said, “The assemblies will still play a key role in collecting these rates. We are just enhancing the ability to collect and also enforcing the collection to the extent the right revenue is collected to develop the country.
The MP for Agona earlier in her statement indicated government in the 2022 Budget has proposed the centralization of the collection of property rates and that to achieve this a common platform will be designed for the collection on behalf of the MMDAs.
She argued, however, that the Local Government Act 2016, provides for a decentralized system of local government and grants the MMDAs the autonomy to plan and generate revenue as well as superintend the development in their administrative jurisdictions.
“That decision to centralize the collection of property rates and the creation of a common platform will come with significant challenges.”
“ It runs counter to efforts made to date by successive governments to decentralize governance at the local level and is likely to result in potential revenue being transferred from the MMDAs to the central government,” she stated.
According to Hon. Queenstar Sawyerr, there is little evidence that the subsequent disbursement of this revenue back to the assemblies will avoid the problems associated with existing central government disbursement.
The Minority, she said, will therefore resist any attempt to centralize the collection of property rates by the government and warned the side will head to court to prevent it.