"Professor Ackah calls for strategic property tax reform to boost Ghana’s tax revenues"

" Professor Ackah calls for strategic property tax reform to boost Ghana's tax revenues \r\n\r\nRenowned Economist and Associate Professor at the Institute of Statistical, Social, and Economic Research (ISSER), Prof. Charles Ackah, has cast a spotlight on Ghana's tax revenue challenges. Prof. Ackah contends that revenue mobilization agencies bear responsibility for setting excessively modest tax revenue targets, thereby stunting the nation's Gross Domestic Product (GDP)-to-tax ratio.\r\n\r\nDuring a compelling discourse during an interview, Prof Ackah highlighted the underpinning causes of Ghana's subdued tax revenue landscape and potential avenues for growth in tax revenues.\r\n\r\nAt the heart of his argument is the perceived inadequacy of the Ghana Revenue Authority and municipal assemblies' goal to amass GHS 165 million through property taxes on a national scale. Vigorously countering this stance, he posits that only Greater Accra Region has the potential to contribute a staggering GHS 12 billion annually from property taxes alone.\r\n\r\nBacking his claims with empirical data from the Ghana Statistical Service, Prof Ackah highlights the vast real estate landscape, with approximately GHS 8.5 million completed residential structures across the nation. Of these, 1.7 million properties are nestled in the vibrant urban sprawl of Accra. Notably, the Greater Accra region boasts a significant share, encompassing around 21% of Ghana's completed residential constructions.\r\n\r\nProf Ackah's quantitative analysis draws attention to the consequential implications of the current targets. Dividing the GHS 165 million target for Accra by its property count, the per-property contribution appears relatively paltry at GHS 97 annually. This arithmetic exercise reveals the modesty of the current tax objectives of the GRA and municipal assemblies.\r\n\r\nAsserting the monumental potential lying dormant within property tax, Prof Ackah asserts that Ghana could unlock up to GHS 12 billion through this revenue avenue. He argues that a strategic focus on high-income communities and burgeoning luxury real estate could trigger a substantial fiscal windfall.\r\n\r\nAdvocating for enhanced accountability and efficacy in setting revenue benchmarks, Prof Ackah champions parliamentary oversight as a remedy. He envisions a system where parliament actively establishes revenue targets and imposes punitive repercussions for any shortfalls.\r\n\r\nBeyond the realm of taxation, he underscores the symbiotic relationship between economic growth and tax revenue. His analysis posits that an expanding and formalizing economy empowers governments to broaden the tax base, aligning with a quintessential facet of sustainable fiscal growth.\r\n\r\nA significant point raised by Ackah is the inverse correlation between GDP per capita and tax revenues. Research has elucidated that countries boasting higher GDP per capita often grapple with lower tax revenues, as the magnitude of the economy interplays with compliance efficacy.\r\n\r\n "

"Professor Ackah calls for strategic property tax reform to boost Ghana’s tax revenues"

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