The government has announced plans to end the centralised collection of property tax by the Ghana Revenue Authority (GRA), transferring full responsibility back to the Metropolitan, Municipal, and District Assemblies (MMDAs).
This is aimed at strengthening fiscal decentralisation and enhancing the ability of local authorities to generate revenue and deliver essential services.
Minister for Local Government, Religious and Chieftaincy Affairs, Ahmed Ibrahim, made the announcement at the Urban Property Tax Workshop in Accra.
The event, organised by the Africa Cities Research Consortium in collaboration with People’s Dialogue on Human Settlement and the Local Government Network (LOGNET), brought together city leaders, policy experts, and stakeholders to explore effective strategies for property tax reform across Africa.
“The President has been emphatic: we are not going to centralise property rate collection, the suspension of the GRA’s vendor arrangement in the 2023 budget was just the beginning. We are now fully returning this responsibility to the MMDAs,” the Minister said.
Mr Ibrahim explained that the previous system, which saw GRA collecting property taxes on behalf of local assemblies, deprived MMDAs of critical internally generated funds (IGF). This limited their ability to invest in public services such as sanitation, roads, and markets.
As part of the government’s broader fiscal decentralisation agenda, the Minister revealed plans to introduce a Local Government Borrowing Act and reintroduce municipal bonds.
These reforms are intended to give local governments the legal and financial backing needed to raise capital for development projects.
He also called for better collaboration between the Land Valuation Division, local governments, and private actors to address valuation gaps and improve efficiency in property tax administration.
He urged stakeholders to leverage digital tools and transparent processes to build public trust and improve compliance.
The Minister praised the ongoing partnership with the Africa Cities Research Consortium, particularly the Accra City Foundation report, which outlines key reform areas in urban governance, including land and property taxation.
