Acting Rent Commissioner Frederick Opoku says revenue generated from rent taxes could provide government with additional resources to address Ghana’s housing deficit and support the construction of affordable and social housing.
Speaking to Isaac Addae on Morning Starr on Starr FM, Mr Opoku described rent tax as a potential source of government revenue that he believes is not being fully utilised.
He argued that landlords who earn income from renting out properties are required by law to pay taxes on their rental income, and questioned whether the system is effectively capturing these revenues.
“The hanging fruit on our nose. The landlord, to me, they’ve got to pay 15%, 8% rent taxes. If you rent your property, we have property tax. It’s different for the assembly. We have rent tax,” he said.
Mr Opoku said the scale of rental activity across the country presents government with an opportunity to raise significant revenue if rent tax collection is properly enforced.
“Everywhere you go the are rental properties” he said, emphasising the widespread nature of rental properties.
According to him, the revenue collected from rent taxes could then be channelled into interventions that directly benefit the housing sector.
“This could give government money to do certain things and even to build affordable housing. The taxes from the rent alone can build social housing,” Mr Opoku said.
He therefore called for stronger attention to the collection of rent taxes, arguing that government could use the revenue to support housing programmes instead of relying solely on other sources of funding.
Mr Opoku further stressed the need for rent taxation to become a national issue, particularly because of its potential to contribute to government revenue and housing development.
“The rent taxes must be a national conversation,” he said.
He also questioned whether the Ghana Revenue Authority is doing enough to ensure that landlords comply with their rent tax obligations.
Mr Opoku said greater collaboration between the Rent Control Department and the Tax Authorities could help improve the identification of rental income and strengthen the collection of taxes due to the state.
He maintained that effective mobilisation of rent tax revenue could help government generate the resources needed to tackle some of the country’s housing challenges.
Source: Starrfm.com.gh/Pamela Quayson
