Only 50 out of 261 MMDAs maintain partial property database

A recent study revealed significant gaps in data management and revenue collection. These issues affect tax identification accuracy and limit local development funds.

Property tax is a largely untapped resource for raising development funds. Metropolitan, Municipal, and District Assemblies (MMDAs) are urging the central government to remove barriers to effective property tax collection.

To improve property taxation in Accra and four other African cities, the African Cities Research Consortium (ACRC) partnered with the Local Governance Network (LoGNet). They held a three-day workshop focused on property tax reform and revenue mobilization.

The workshop aims to boost domestic revenue, reduce reliance on central government transfers, and promote sustainable urban development. Dr. Loretta Agyeman from LoGNet highlighted challenges like weak property data management.

Many MMDAs lack reliable databases due to incomplete records. Poor collaboration between agencies complicates tax assessments by creating inconsistent ownership records.

Dr. Agyeman noted that various reforms have been attempted but obstacles remain. Tensions between central and local governments hinder progress, as do technological adoption challenges and resistance from elites.

Samuel B. Biitir from SD Dombo University discussed rate setting challenges. Some MMDAs engage stakeholders to align tax rates with fiscal needs, but inconsistent data undermines fairness.

Limited access to digital payment options is another major issue. Tax payments are often restricted to a few banks or require in-person visits, making compliance difficult.

Biitir stated that low collection rates, corruption, and weak enforcement lead to revenue loss. Political will also affects enforcement during election years when penalties for elites are avoided.

Experts recommend modernizing property databases for better accuracy. They suggest digitizing records and enhancing coordination between the Lands Commission and MMDAs for reliable data sharing.

Expanding payment channels through mobile money could improve convenience for taxpayers. A credible property tax system is essential for local revenue mobilization.

Under Section 144 of the Local Governance Act of 2016, MMDAs were responsible for property tax collection. However, a previous government initiative created a Unified Common Platform under the Ghana Revenue Authority (GRA).

This led to disagreements between the central government and assemblies, halting property tax collection for three years.