Mid-year budget: Scrap 17.5% VAT on immovable properties – GREDA

Real estate sector players are lamenting over government's reintroduction of a 17.5 percent Value Added Tax (VAT) on the sale of immovable properties.

They argue that the tax is hindering sector growth and criticise the lack of consultation prior to its reintroduction.

They urged the government to abolish the tax as part of its commitment to refrain from introducing additional taxes in the mid-year budget review scheduled for Tuesday, July 23.

The Executive Secretary for the Ghana Real Estate Developers’ Association (GREDA), Samuel Amegayibor said: “They never engaged us. All of a sudden, there is a directive that the tax should be implemented, and then they have gone ahead to develop guidelines without a major stakeholder like GREDA.

“So how do you expect us to be your agent of tax collection and you don’t involve us in the guidelines, and then you just snap on us? I was surprised. I saw a copy of this guideline just last night. ”

He added: “As the Executive Secretary of GREDA, I have not seen what my sector is supposed to help implement for the government to make revenue. Then what are we doing? I think these are some of the things that we are talking about.

-Citinewsroom