Import duties killing real estate sector – Koans CEO

Exorbitant import duties on building materials imported into the country is killing the real estate business in Ghana, Kofi Anokye, Chief Executive Officer of Koans Estate, has said.

According to him, although the government knocked off the five per cent tax on real estate sale, high import duties still remain a challenge for the industry.

The Akufo-Addo-led government last year abolished some taxes in the country while others were reviewed downwards.

The abolished taxes were the one per cent Special Import Levy; 17.5 per cent VAT/NHIL on financial services, 17.5 per cent VAT/NHIL on selected imported medicines that are not produced locally, 17.5 per cent VAT/NHIL on domestic airline tickets, 5 per cent VAT/NHIL on real estate sales, excise duty on petroleum, special petroleum tax rate from 17.5 per cent to 15 per cent, duty on the importation of spare parts, levies imposed on kayayei by local authorities amongst others.

Speaking on Ghana Yensom on Accra100.5FM hosted by Chief Jerry Forson on Thursday, 12 April, Mr Anokye said: “The previous NDC government reduced the tax to 5 per cent and now President Akufo-Addo has removed it totally. But it is not enough.

“There are still other issues that are affecting our work. The import duties we pay are too much, and, so, the government must focus on that. We cannot rely only on locally produced materials for our work, we need to import some into the country but the amount we pay as duties is killing the business.”

Touching on affordable housing in Ghana, he said: “The government must look at the estate developers who have the potential to do a good job, like Koans, to partner and provide affordable houses to Ghanaians.

“That way, a well-thought through plan can be implemented to build real affordable houses.”