Tax Analyst Francis Timore Boi has proposed the creation of specialised courts to address cases involving individuals who fail to pay property taxes to their local assemblies. He argues that non-payment of property taxes should, in severe instances, lead to the seizure of properties and prosecution, similar to practices in other countries.
Boi believes that boosting property tax revenue could significantly reduce local assemblies’ reliance on central government funding. Speaking at the National Tax Conference organised by Oxfam, he emphasized the need for strict enforcement of property tax collection by local authorities.
“Taxation is not a donation. It’s not like a church where you call people to give as and when they can. It is enforcement that will bring in the tax revenue,” Boi stated. He highlighted the current lack of consequences for non-payment, noting that in other jurisdictions, local councils can enforce payment by seizing properties of defaulters.
“We are calling for special courts to be established so that those who don’t comply with the law can be dealt with accordingly. District Assemblies should be able to take legal action against individuals who do not adhere to the local government act concerning property tax payments,” he added.
On the other hand, Dominic Naab, Assistant Commissioner of the Ghana Revenue Authority (GRA) in the Policy and Programmes Department, acknowledged the issue of low compliance with property rate payments but disagreed with using harsh measures to increase payments. Instead, he advocated for more education to encourage voluntary compliance.
“We have tried using brute force to collect taxes before, but it hasn’t yielded the desired results. What we should focus on is encouraging compliance through education,” Naab said.
The National Tax Conference, held under the theme “Improving Progressive Property Taxation and Tax Compliance: The Key to Increased Domestic Revenue Mobilization in Ghana,” aimed to explore ways to enhance tax compliance and boost domestic revenue.
