GRA tax exemption on real estate must be amended – Property developer

Mr Frank Aboagye Danyansah, the Chief Executive Officer of Danywise Estate and Construction, has called for an amendment of the Ghana Revenue Authority (GRA) Tax Exemption for real estates.

He said this tax exemption favours only developers venturing into affordable housing.

In an interview with the Ghana News Agency on Friday, Mr Danyansah also called for the reduction of the five per cent tax on real estates to encourage more private developers into the ailing sector that experts say requires $34 billion dollars capital injection to bridge the demand and supply gap.

He expressed the belief that encouraging private participation in the country’s housing sector would help close the widening deficit, which is pegged at around 1.7 million units and projected to reach two million by 2018.

“Now Government has created a Ministry that will largely focus on housing, for which we have been longing,” he said adding that “giving priority to the housing sector is a good move but the incoming Minister must work to reduce the five per cent tax on real estate”.

There is the need to amend the GRA tax exemption on Real Estate 2010,” he said, explaining that a portion of the law was “solely at the discretion of the [sector] Minister in consultation with the Minister of Finance, and that creates an avenue for corruption.”

“That tax law should, therefore, be changed,” he said.