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Today in History: Rent payment should be taxed - Danquah Institute

Apartment East File photo of an apartment

Thu, 24 Nov 2022 Source: www.ghanaweb.com

The Executive Director of the Danquah Institute, Dr Antoinette Tsiboe-Darko suggested that government begins taxing rent.

According to her, the business of renting rooms and apartments has become a lucrative business that could widen Ghana's tax net.

She said, "building for renting has become a booming business, especially in our major cities Accra and Kumasi and millions of Ghana cedis continue to exchange hands in that sector."

"Unfortunately, owners of the houses go to tenants to collect rent directly without paying anything to the government,” she bemoaned.

Read the full story originally published on November 24, 2021, by GhanaWeb

Executive Director of Danquah Institute wants rent payment taxed

Renting a room, apartment has become lucrative business

Government must set up rent control agency


Taxation has been one of the major strategies government uses to rope in revenue to develop the country.

The recent tax to be introduced in the 2022 budget is the 1.75% levy on all electronic transactions.

Though this e-levy has received public backlash, the Finance Minister, Ken Ofori-Atta, has said government will find a way to win the cooperation of the Minority in parliament to accept the e-levy.

Just as this matter on taxation is simmering down, the Danquah Institute has called out government to implement a new tax policy on rent payment.

According to the Executive Director of Danquah Institute, Dr Antoinette Tsiboe-Darko, it's about time rent payment is taxed.

She said the rate at which people build in Accra and Kumasi to rent for cash is unimaginable.

She said renting out rooms or apartments has been a lucrative business in Accra and Kumasi.

Dr Antoinette Tsiboe-Darko, at a press conference held in Accra, suggested that government sets up a rent control agency to be in charge of the collection of rent payment levies.

The Executive Director of Danquah Institute said, "building for renting has become a booming business, especially in our major cities Accra and Kumasi and millions of Ghana cedis continue to exchange hands in that sector. Unfortunately, owners of the houses go to tenants to collect rent directly without paying anything to the government,” she bemoaned.

“The institute urges the government to set up rent control agencies, if possible, in all major cities to be in charge of rent issues. In other words, owners of rooms or houses will have to register with these agencies while those who need rooms will then go there to make payments for their choice. We are hopeful that through this initiative, rent payment could be taxed,” she is quoted to have said by classfmonline.

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Source: www.ghanaweb.com
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