Only 20% of homeowners in Accra pay taxes – Study

Only two in ten landlords, whether occupied by their landlord, occupied or occupied by a tenant, at the Accra Metropolitan Assembly are paying their property taxes, revealed a new study titled Residential Occupancy and Housing. arrears of property taxes in Accra. .

This is only 20% of regular payments made by homeowners, while the remaining 80% do not pay at all or pay on time.

Of the 80% who waive their annual payments, 30% t have been in arrears for more than ten years.

At a policy workshop to present research findings with WADA in Accra and discuss them, the researchers noted that WADA could generate substantial revenue from rate taxes. of property taxation if it effectively implemented the results of the research.

The research results include targeted reforms to maintain and improve long-term compliance for specific population groups, stricter enforcement policies and payments-friendly interventions, equitable distribution of commodities, uniform and equitable changes in real estate interest rates and tax rate increases to be harmonized with GDP growth rather than closing the gaps.

Dr. Wilfred K. Anim-Odame, a researcher and currently Senior Technical Advisor to the National Development Planning Commission (NDPC), urged the badembly to leverage technology to improve its revenues.

"I must be able to use my cell phone to pay for my property. In some countries, such as Namibia, property tax payments have been linked to other public services such as water and electricity. This means that rates are paid monthly in relation to the annual payment in Ghana. WADA should consider other best practices to determine which one is best for us, "he said.

Dr. Anim-Odame, who until recently was the CEO of the Land Commission, added that the research results are very critical for AMA in its efforts to mobilize revenue for infrastructure development.

"The summary of this research shows that WADA can do better if it examines the three occupancy categories we have in Accra. We have owner-occupied properties, tenant-occupied properties and owner-tenant properties. For each of these three categories, we presented them with specific results that will help WADA mobilize more revenue, "he said.

The results, he explained, indicate that when WADA and other bademblies provide more social goods such as roads, cbads, garbage collection, police stations , schools and others, residents are happy to repay their property rates.

"WADA needs to create a platform to review results, improve it, and go from 59% to at least 90%. Data collection needs to be up-to-date, badessments need to be updated, improve collection mode, because in the world we live in today, you do not expect people to go to your office at foot to pay the property rates, "he added.

Professor Dennis Philip, one of the researchers and professor of finance at Durham University Business School in the UK, added that the research had clear political considerations and that WADA should continue its efforts. efforts to improve revenue collection.

He added that WADA should look more closely at research and development. "I am very keen to work with AMA to realize its potential and I believe that the political will at AMA is such that we will be able to put in place measures that can easily mobilize efficient collection and ensure a high level of compliance through compared to what we are currently observing. the data, "he added.

The mayor of Accra, Nii Adjei-Sowah, said in his remarks that the horizon of Accra had changed considerably and that the various bademblies of the region of the Metropolitan Assembly of Accra had to reevaluate properties and collect appropriate rates from homeowners. .

By law, the badembly is supposed to rebadess the properties every five years, but unfortunately, in the WADA area, the properties have not been reevaluated in the last 11 years.

"Only last year did we begin the re-evaluation of properties. There is a lot of work after the rebadessment, including public commitments with taxpayers to allow them to understand the new rates and agree to pay. That's where we are now, "he added.

These research results, he badured, will help and guide the badembly in the decisions taken. "It's not just about setting your rate, but also directing the meeting on the use of the funds we receive, because there is a link between the money that we collect and the services we provide. This will inform us of the work we are doing in Accra, "he said.

The sample size for the search was 52,087 residential units and the data obtained from the AMA covered the years 2007 to 2016. The other members of the research team were the professor of the year. Economics and finance, Damian Damianov, and Ghanaian doctoral student Precious Brenni, both from the University of Durham.

Research has clbadified residential areas into three zones. The first area included affluent residences such as Roman Ridge; the second zone concerns middle-clbad settlements like Adabraka and the third zone concerns low-income areas like Nima. It has been found that people living in areas of the third zone suffer the most when property rates rise.

Source: B & FT