Tax Accomplice at PwC, Abeiku Gyan-Quansah, has raised considerations over the inefficiencies in Ghana’s property charge assortment system, emphasizing the necessity for a complete restructuring to enhance compliance and income era. Talking on the Pleasure Enterprise Financial Dialogue, Mr. Gyan-Quansah highlighted the challenges in tax administration and referred to as for simplified tax assortment platforms to boost effectivity.
“Coping with property charges ought to have been comparatively simpler than dealing with earnings taxes,” he famous. “In contrast to earnings taxes, the place people can discover methods to evade funds, property charges are tied to bodily, traceable belongings. Nevertheless, regardless of this, we proceed to face important challenges in assortment.”
One of many main points, in accordance with Mr. Gyan-Quansah, is the problem in registering property possession, which hinders tax compliance.
“Many property house owners battle to acquire official titles for his or her properties. If the federal government doesn’t restructure the system to make sure folks can simply declare possession of their properties, they may at all times discover causes to keep away from paying property charges,” he defined.
He additionally famous the inconsistent position of the Ghana Income Authority (GRA) in helping Metropolitan, Municipal, and District Assemblies (MMDAs) in tax assortment.
“The GRA initially stepped in to help property charge assortment, however as we perceive it, that help has been scaled again. Now, the assemblies have taken again the duty, however the query stays—how efficient are they in implementing it?”
Mr. Gyan-Quansah burdened that native assemblies should play a extra energetic position in guaranteeing environment friendly property tax assortment and repair supply.
“Assemblies ought to make sure that property registration is easy and accessible. If folks can simply register their properties, they may have fewer excuses for avoiding cost,” he stated.
Drawing comparisons with worldwide practices, he identified the essential position property charges play in funding native improvement.
“In locations just like the UK, a good portion of group improvement initiatives is funded by property taxes. Nevertheless, in Ghana, folks anticipate the central authorities to repair roads, drainage programs, and different infrastructure. When they don’t see outcomes, they use it as a justification for not paying property charges.”
Mr. Gyan-Quansah additional argued that the federal government’s potential to implement tax assortment is immediately linked to how effectively public funds are utilized.
“If we don’t put the expenditure basket to good use, folks will at all times discover causes to keep away from paying taxes,” he concluded.
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