The Ghana Revenue Authority (GRA), has clarified certain misconceptions regarding Property Rate Tax. It said as an authorised entity, GRA can facilitate the efficient collection of property rates. It is important to note that the GRA does not levy property rates but assists in their collection by providing technological support, data, security, and transparency.
This was contained in a statement in reaction to a recent publication made by the Chamber for Local Governance, ChaLoG, on the collection of Property Rate Tax.
The statement said the computation of property rates remains unchanged, involving the multiplication of the ratable value from the Lands Valuation Division of the Lands Commission by the rate impost set by the D District Assemblies.
It said that regarding the identification of property, the GRA has procured base maps with enhanced building footprints and other variables, covering the entire country. These maps have aided the Land Valuation Division in identifying and valuing property, ensuring that each property in each district is accounted for.
This comprehensive approach is a significant improvement over previous methods, which relied on costly valuations conducted by private companies or international bodies. It is crucial for all stakeholders, including MMDAs, to work together to expand the tax net and contribute to the development of our country.
Full statement below:
The Chamber for Local Governance (ChaLoG) in a statement issued on May 31st stated that:
“Property Rate Tax is a ceded revenue for District Assemblies as enshrined in Section 124 (3) of the Local Governance Act, 2016 (Act 936) and hence cannot be collected by any other institution other than the District Assemblies.”
Section 124 of Act 936 as cited, speaks to Revenue of district assemblies but makes no reference to the district assemblies collecting revenues on their own and says nothing about the Metropolitan, Municipal and Districts Assemblies (MMDAs) not allowing other state agencies assist them in the collection of internally generated funds which includes property rate.
The local governance act, ACT 936 Sec 144 does states that:
“A District Assembly shall be the only authority to LEVY rates for a district despite any customary law to the contrary”, this is not in question as in this case, the GRA does NOT levy property rates. The GRA is simply enabling the efficient with the collection of the revenue by providing the much-needed technology, data, security, transparency and the like to ensure that the collection of property rate is maximised and the identified ills of the past resolved. The computation of the property has been as has always been, which is multiplying the rateable value from the Lands Valuation Division of the lands commission by the rate impost set by the district. The GRA has no hand in the either.
It is worthy of note though that section 148 of Act 936, states that
‘When a rating authority has given notice of a rate, a person liable to pay the rate, shall pay the amount to a rate collector or OTHER PERSON DULY APPOINTED OR AUTHORISED BY THE DISTRICT ASSEMBLY CONCERNED TO COL LECT and receive the rate at the time and place specified by the rating
authority’ and as such, all proper rate MUST be paid to the collector, in this case, the GRA.
How are properties identified?
We are using base maps with enhanced building footprints and other variables. The MMDAs had solutions that required them to procure base maps on their own. These solutions have not been put to their full potential due to the high cost of these base maps. Through this project, the base map of the whole country which included over 10million building footprints have been procured and made available to aid the Land Valuation Division (LVD) with the identification of all properties in the country. For the first time in this country, each property in each district within this country is accounted for; their location and how to get to each of them.
Valuation of properties: The prohibitive cost of these valuations have rendered the valuation of properties in the various MMDAs near impossibility. Some MMDAs over the period, relied on private companies and other international bodies to value properties. These methods have not yielded the requisite results until this current GRA involvement.
This body asked a few fundamental questions which just some minimal research would have cleared all their doubts.
1. Did the GRA identify the properties on the ground itself before taking over the collection of the Property Rate Tax through an electronic payment platform?
YES as mentioned earlier, Through this project, the base map of the whole country including some over 10million building footprints have been procured and made available to enable the identification of all properties in the country and aid their valuation. For the first time, we know each property in each district in the country, their location and how to get to each of them.
2. Did the GRA physically identify property owners/property payers after it took over the collection in January 2023?
Yes. The number of property owners identified prior to today was less than 2.2% of what has ben identified today (the total number identified from all the districts put together was less than 100 thousand. Today, almost everyone you know has received a message identifying them as owners or renters and the process continues.
3. Did the GRA generate valuation data in the 185 MMDAs government claimed did not have their properties valued?
The process is ongoing and the project has introduced innovative technology which even enables each one of us to get a provisional value when we register on the platform and the LVD can then very quickly complete its exercise to certify that value.
Sec 148 (8) of Act 936 “The Minister shall in consultation with the Minister responsible for valuation cause to be determined by the Lands Commission or by a valuer appointed by the Lands Commission, the rateable value of premises and may cause a valuation list to be prepared for each district”.
4. Did the GRA get the valuation and telephone numbers of rate payers by itself before sending them text messages? TECHNICAL SUPPORT AND CLIENT SUPPORT OFFICERS ARE DEPLOYED ON THE GROUND MOPPING UP ALL NEW AND OUTSTANDING DATA. This process is widely published in the Daily Graphic Ghanaian Times and all over online platforms. In addition, the use of advanced technologies has enabled the GRA to mine and consolidate data from the various digital platforms to enrich the data. The process will continue until every single property is addressed.
ChaLog prides itself as an authority in the affairs of MMDAs in Ghana and have access to the ministry of local government and reputable organisations like NALAG but still presents its case as though they are not aware that the MMDAs
have signed MOUs with the GRA to assist in the mobilisation of property rates in the MMDAs?
It is widely believed that too few people are within the tax net and on the few loyal patriotic ones keep on paying. The easiest way to expand this net and develop our country is for all hands to be on deck. Lets all pay our property rates for rapid decentralised development.
What GRA has Achieved so far:
1. Identified over 10.1 million properties in the country eligible for property rate
2. Provided the platform to remove all the ills of the old regime and giving each citizens domicile anywhere in the world, the platform to ensure that the monies paid go to the assembly to help the assembly do its work
3. Provided transparency to rate payers on what is being charged and how
4. Provided the foundation to ensure that future years property rate collection will be transparent, efficient and achievable.
5. The ability to identify defaulters quickly and easily and to apply enforcement without prejudice.
6. Most importantly, provided the opportunity to realise significant revenue from property rate and which was difficult to identify and collect and monitor collections at all levels.
From the issues indicated above, the GRA has only improved the property rate regime to ensure transparency and accountability.