The Minister of state designate for the Ministry of Local Government, Decentralisation and Rural Development, Mr. Osei Bonsu Amoah has commended President Nana Addo Dankwa Akufo-Addo for creating six new regions in Ghana to deepen democracy and promote the development of the country.
He also praised his boss Mr Dan Botwe who skilfully spearheaded the creation of the regions as the then Minister for Regional Reorganisation and Development.
Mr. O.B. Amoah who doubles as the Member of Parliament (MP) for Akuapem South Constituency in the Eastern Region affirmed the importance of the new regions when he appeared before the Appointments Committee of Parliament yesterday for vetting towards the approval of his new portfolio.
Asked if the creation of the regions has not been a drain on the Ghanaian economy, the nominee reiterated that it has rather helped to enhance the growth of the economy at the local level as more business opportunities are being created for the people through new projects and employment.
“The creation of the new regions is helping to deepen our democracy and promote development. For instance, the Northern Region has been divided into three regions and each of the regions has received some level of development”, Mr. O. B. Amoah stated.
He explained that the new regions are getting modern regional administrative offices and other development projects in many communities at a faster rate than they would have probably received if they were still with their mother regions.
“The new office of the Western North Regional Coordinating Council is probably beautiful than the Jubilee House, thanks to the creation of the region,” Mr. O.B. Amoah stated jokingly.
Collection of property rates
The minister-designate also informed the Appointments Committee the rationale behind government’s plan to partner with the Ghana Revenue Authority (GRA) to collect property tax in the country.
It was announced that a share ratio will be decided between the revenue agency and the Metropolitan, Municipal and District Assemblies (MMDAs) as a way of ensuring cost recovery by the government in providing the infrastructure for the collection of the property rate.
However, the move for the GRA to collect property rates has received some criticism with the claim that it will likely strangle the Assemblies financially.
Answering questions on the issue, Mr. O. B. Amoah disagreed with the criticisms, insisting that the collaboration with the GRA will rather help to broaden the tax net.
“The Ministry of Finance has been complaining for some time now that the amount of revenue they expect from property rates administration is a bit disappointing.
“The assemblies have also not been able to meet the required levels because they have their own challenges, the mode of collection, the billing systems, and enforcement arrangements. We collect peanuts and at times, for years, no assessments are made. So this whole arrangement with GRA brings in a certain amount of reform and dynamism, so we reap so much from property rate. This is the best way to go.”
There have been complaints about successive governments’ inability to raise the much-needed revenue through property rates in Ghana.
Consequently, as a dramatic move to reverse the trend, the Akufo-Addo administration has digitalised over four million properties across the country to ease tax collection.
With the new digital system, all property owners are expected to pay for their property rates using the government’s cashless system as a result of the partnership between the GRA and the MMDAs.
“Some assemblies have said that when it comes to enforcement, they are handicapped. We need a situation where people will be named and shamed and prosecuted. The law has made those provisions and we have to let people know this that is why the system has been modernized”, Mr. OB Amoah stressed.
Property rate is a levy imposed on immovable property at a specified rate on the rateable value of a property.
The amount varies between specified areas of a district and in respect of property used for different purposes, commercial, residential or mixed-use and area classifications, first class, second class and third class.
