Deputy Minister for Local Government, Decentralisation and Rural Development Mr. Osei Bonsu Amoah has debunked assertions that the collection of property rates has been centralised.
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 of the property rates.
The assistance of GRA, he stressed, is not a takeover neither is it centralised.
Mr. O. B. Amoah debunked the claims while contributing to a statement by the Member of Parliament (MP) for Agona East, Queenstar Maame Opokuah Sawyerr.
The Agona East MP in her statement indicated government in the 2022 Budget, 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 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 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.
However, Mr. O. B. Amoah reiterated the collection of the property rates has not been centralised.
He indicated that 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.
Mr. O.B. Amoah who is also the MP for Akuapem South stated a final meeting is planned where final decisions will be taken for the piloting of the programme.
“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 said there was the need to ensure property rates collection commenced 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.
The Deputy Minister stressed that beyond an assessment of the properties, the state should be able to pursue collection instead of prosecuting those who default in payment.
“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”.
