The new property rate regime, which was introduced in April, this year, is expected to boost revenue mobilisation efforts of the metropolitan, municipal and district assemblies (MMDAs), and the country in general. A story published in Graphiconline.com has reported that the new property rate collection platform, Myassembly.gov.gh, has accrued over GH¢20 million in three months of operation.
According to the Head of Communications of the Ghana Revenue Authority (GRA), Property Rate Project Office, Ernest Adade, the amount was paid through voluntary compliance within the 52-day moratorium provided under the Local Governance Act, 2016 (Act 936). The disbursement formula has up to 70 per cent of the amount collected being transferred into the accounts of the relevant MMDAs, where the properties are located, with the remainder disbursed as the cost of collection.
The Chronicle is happy that with the inception of the new property rate regime, the system was able to generate GH¢10 million within two months, and was able to cross GH¢20 million in August, this year, mainly due to voluntary payments under the moratorium or grace period.
Hitherto, the assemblies on their own were collecting an average of GH¢56 million per year across the country. This is indeed a very big jump and we encourage the GRA, assisted by the MMDAs, to intensify nationwide enforcement as part of measures to ensure compliance with property rate payments.
In fact, the successful implementation of the digital Property Rate Portal is a beacon of hope in the MMDAs’ efforts to streamline financial processes and bolster economic growth. Embracing technology not only accelerates revenue collection but also enhances transparency, reduces administrative burdens and minimises the scope for financial irregularities.
We applaud the government’s foresight in embracing this digital transformation, which not only boosts revenue, but also showcases Ghana’s commitment to embracing a future driven by innovation.
While the initial success of the digital Property Rate Portal is indeed commendable, it is crucial to recognise that sustained progress hinges upon nationwide enforcement. To ensure widespread compliance with property rate payments, it is imperative that government intensifies enforcement measures across the country.
This could include rigorous public awareness campaigns, regular property assessments and stricter penalties for defaulters. The Chronicle is glad about the punitive measures in Act 936, which mandates relevant authorities to auction properties to deflate property rate arrears.
It is important to implement penalties for property owners who default on their property rate payments. These penalties should be fair and proportionate to the outstanding arrears. The law clearly demands that a property should be auctioned if its rate is not paid.
Also, the MMDAs must establish a mechanism for engaging with property owners in arrears to understand their circumstances and explore options for repayment. This approach should prioritise dialogue and resolution over punitive measures.
The success of Ghana’s property rate portal in generating GH¢20 million within three months is a testament to the potential of digital solutions in modernising revenue collection processes. It is an opportunity to enhance transparency, accountability and efficiency in governance. As we celebrate this achievement, we must also recognise that this is just the beginning of the digital revolution in property rate enforcement.
