Director of the Institute of Statistical, Social and Economic Research (ISSER) of the University of Ghana, Professor Peter Quartey has told the government to focus on property rate payments as a means of raising domestic revenue.
He said the government must scale up property rate collection, not necessarily increasing the rates, as a way of taxing the rich.
Speaking in interview with TV3’s Alfred Ocansey, Prof Quartey said “To shore up revenue, I think there are a lot of untapped areas. One has been the issue of property rate and I keep emphasizing this point.
“If you look at the budget statement of 2022, we are earmarking half a billion cedis to be realized from property rates. Just go through the Bank of Ghana records, go through the banks, look at how many people have borrowed and how much the value of collateral they have used in one year, it will amaze you the value of properties that we have in the country.
“Yet, ask yourself what percentage of this property rate that we are realizing? So I believe the low-hanging fruits will be to look at property rate and make sure, we don’t have to increase the rate, whatever rate we have in the system, just apply them and make sure people pay property rate.
“If you tax the rich, that shouldn’t be a problem but where you want to tax the poor that is where it will lead to a lot of agitations. So I think that is one clear area we can raise revenue to bridge the gap and restore confidence in the economy. Investors will have confidence in the economy, rating agencies will have confidence if we are able to raise more revenue.”
GhanaFeed.com