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Gov’t to End Cash Collection of Property Rates – Local Government Minister

ACCRA, Ghana, 5th October: The government is preparing to overhaul the collection of property rates at the local government level by introducing a centrally controlled electronic payment system.

The Minister of Local Government, Chieftaincy and Religious Affairs, Mahama Ayariga, said the reform is intended to address inefficiencies, inconvenience and alleged leakages associated with the existing property rate collection system.

Speaking at the Government Accountability Series at the Presidency, Hon. Ayariga said the Ministry is in discussions with President John Mahama and Finance Minister Dr Cassiel Ato Forson to recalibrate the property rates regime.

He said the objective is to ensure that Metropolitan, Municipal and District Assemblies (MMDAs) received adequate funding to perform their responsibilities as service providers.

According to the Minister, the existing property rates system is affected by inefficiencies and corruption, including situations where monies paid by property owners allegedly end up in private hands.

He said the government would therefore introduce a centrally controlled collection mechanism that would eliminate cash payments.

He argued that improved service delivery at the local level would encourage property owners to comply with their tax obligations.

Hon. Ayariga said residents are more likely to pay property rates when they could see tangible services being provided by their local authorities.

“We believe that when citizens see their local government authorities providing them the services they are entitled to, they, the property owners, will reciprocate by paying their due property rates,” he said.

The Minister said the reform formed part of a broader effort to strengthen the financial capacity of local government authorities and improve service delivery.

He added that discussions are also ongoing with development partners to ensure that stakeholders were aligned with the proposed reforms.

Story by: Emmanuel Romeo Tetteh(#RomeoWrites✍️) Presidential Affairs Correspondent | Ghana 🇬🇭

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