MMDAs to collect property tax, no more GRA — Local Government Minister

In a significant move towards strengthening fiscal decentralization, the government has announced the end of centralized property tax collection by the Ghana Revenue Authority (GRA).

This responsibility will now be handed back to Metropolitan, Municipal, and District Assemblies (MMDAs) to boost their revenue generation capabilities.

The announcement was made by the Minister for Local Government, Religious and Chieftaincy Affairs, Mr. Ahmed Ibrahim, during his keynote address at the Urban Property Tax Workshop. The event, organized by the African Cities Research Consortium in partnership with People’s Dialogue on Human Settlements and the Local Government Network (LOGNET), aims to improve property tax systems across Ghana and the continent.

According to Mr. Ibrahim, the centralized collection of property taxes in recent years had deprived local assemblies of much-needed internally generated funds (IGF), limiting their ability to deliver essential services. He emphasized that this model had worked against the core principles of decentralization.

“The President has been emphatic, we are not going to centralise property rate collection. The suspension of the GRA's vendor arrangement in the 2023 budget was just the beginning. We are now fully returning this responsibility to the MMDAs to enhance their revenue mobilization and service delivery,” he said.

The Minister also outlined government initiatives aimed at deepening fiscal decentralization. These include the reintroduction of municipal bonds and the planned enactment of a Local Government Borrowing Act. These measures, he noted, would enable MMDAs to tap into capital markets to finance infrastructure and development projects.

In addition, Mr. Ibrahim called for stronger collaboration among key institutions such as the Land Valuation Division, local authorities, and the private sector to resolve issues arising from the updated land valuation system. He stressed the importance of leveraging digital tools to streamline property tax administration, build taxpayer trust, and improve compliance through transparency and public engagement.

He urged participants at the workshop—including city officials, policymakers, and international experts—to share best practices and explore innovative digital solutions that would support efficient and accountable revenue collection at the local level.

Mr. Ibrahim also highlighted the ministry's collaboration with the African Cities Research Consortium in producing the Accra City Foundation Report, which identified key urban governance reforms, including the improvement of land and property taxation.