Stakeholders in Ghana’s local governance and revenue mobilisation space are pushing for urgent reforms to modernise property rate collection, arguing that digitisation, transparency, and flexible payment systems could significantly boost internally generated funds (IGFs) for Metropolitan, Municipal and District Assemblies (MMDAs).
The call comes amid growing concerns over revenue leakages and underperformance in property tax mobilisation an area widely seen as a critical but underutilised financing tool for local economic development.
The recommendations were made during the virtual launch of a Youth Media Advocacy Platform on Property Tax, spearheaded by Norsaac, Oxfam in Ghana, and the Media Foundation for West Africa (MFWA).
Stakeholders emphasised that improving property rate systems could provide a sustainable and predictable revenue stream for local governments, reducing reliance on central government transfers and enhancing fiscal autonomy.
They noted that inefficient property databases, weak enforcement mechanisms, and low public trust continue to undermine revenue collection, limiting the ability of assemblies to finance infrastructure, sanitation, and social services.
A recent study on property rate administration revealed systemic inefficiencies but also highlighted strong revenue potential if reforms are implemented effectively.
Central to the reform agenda is the digitisation of property databases, which stakeholders say will improve accuracy in property identification, valuation, and billing.
A digital system is expected to reduce human interference, minimise revenue leakages, and enhance compliance by making it easier for property owners to receive and settle bills.
“Digitisation is not just about efficiency; it is about expanding the tax net and capturing the true value of urban growth,” the study noted.
The study also found that decentralised property rate collection systems outperform centralised approaches, with evidence showing a dip in revenue mobilisation in 2023 when the Ghana Revenue Authority oversaw collections.
Revenue performance rebounded in 2024 after MMDAs regained control, suggesting that localised knowledge and enforcement play a critical role in improving compliance and collections.
For instance, Kwadaso recorded a remarkable 251.7 percent increase in property rate revenue following the return to decentralised administration, while Obuasi and Ga West Assemblies also posted moderate gains.
Stakeholders stressed that transparency in the utilisation of property rate revenues is essential to improving voluntary compliance.
They argued that taxpayers are more likely to honour obligations when they can directly see the impact of their contributions through visible community projects such as roads, schools, and sanitation systems.
Linking tax payments to tangible development outcomes, they said, could help shift public perception and strengthen the social contract between citizens and local authorities.
To further boost compliance, the study recommended introducing flexible and digital payment options, including instalment plans, to accommodate low-income households and informal sector workers.
Such measures, stakeholders say, would make the tax system more inclusive while expanding the revenue base.
The newly launched Youth Media Advocacy Platform is expected to play a key role in reshaping public attitudes towards property taxation, particularly among younger populations.
By leveraging social media and digital tools, the initiative aims to demystify property taxes, promote civic responsibility, and hold local authorities accountable for revenue utilisation.
Stakeholders highlighted that property rate collection is backed by existing legislation, including the Local Government Act, 1993 (Act 462) and the Local Governance Act, 2016 (Act 936), which empower MMDAs to assess and collect property taxes.
They also traced the evolution of Ghana’s property tax system from the pre-independence “Ntokua toa” model based on the number of windows in buildings to a more structured, value-based framework aligned with modern urban economies.
Ultimately, stakeholders argue that reforming property rate systems is not just about revenue collection but about unlocking financing for sustainable local development.
With improved systems, MMDAs could significantly enhance their capacity to invest in infrastructure, stimulate local economies, and improve service delivery.
They stressed that aligning technology, transparency, and inclusive policies could transform property taxation into a powerful engine for grassroots economic growth in Ghana.
