Collection of property rate: GRA being used as a decoy to front for a private company - ChaLoG

The Chamber for Local Governance (ChaLoG) has accused the Ghana Revenue Authority (GRA) of being used as a decoy by a private company for the collection of property rate tax.

In a news report sighted by GhanaWeb Business the Chamber further said GRA is also in alliance with the private company to hold on illegally to government funds beyond the stipulated 48 hours.

This, ChaLoG said was in contravention of the Financial Administration Act, 2003 (Act 654) and the Financial Management Regulations, 2019 (L.I 2378)

“ChaLoG’s independent investigations have revealed that the GRA is not the actual institution collecting the Property Rate Taxes, but only been used as a decoy to front for a private company," it said.

“As if that is not enough, the GRA is also in cahoot with the private company to hold on illegally to government funds beyond the stipulated 48 hours in sharp contravention of the Financial Administration Act, 2003 (Act 654) and the Financial Management Regulations, 2019 (L.I 2378)," it added.

ChaloG further contends that "even if the GRA’s deception of being the institution collecting the Property Rate Taxes is to be believed, they will also be flouting Section 21 of the Ghana Revenue Authority Act, 2009 (Act 791) which does not permit it of more than 3% of public funds it collects.”

But it would be recalled that in March this year it was announced that the collection of property rates was going to be done by the Ghana Revenue Authority.

This was because of the lack of capacity by the Assemblies to maximize collection.

What is property tax?

Property tax or property rate is a real estate tax that is calculated on the assessed value of the property.

In Ghana, it is known as property rate and is governed by the Local Governance Act, 2016 (Act 936).

What will be taxed?

This tax applies to immovable structures such as houses, apartments, estates, a mall, skyscraper shops and any other immovable property.

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