Government halts private firms from collecting property rates for MMDAs

With immediate effect, all Metropolitan, Municipal and District Assemblies (MMDAs) are expected to stop engaging private firms for purposes of property rate collection in the localities.

This is contained in a letter dated December 8, 2021, issued by Mr. Dan Botwe, the Minister of Local Government, Decentralization and Rural Development to all Chief Executives of the various MMDAs.

The directive to halt the collection is to enable the Government come up with more effective and efficient ways of mobilizing funds for the assemblies.

This is due to the challenges property rate assessment and collection possess to most MMDAs and the “inefficiencies” it is plagued with, as indicated in paragraph 303 of the 2022 Agyenkwa budget statement.

“Government, through the Ghana Revenue Authority will from January 2022, assist the MMDAs to implement a common platform for property rate administration to enhance property rate collections and its accountability.

“To ensure cost recovery by Government in providing the infrastructure for the collection of the Property Rate, a sharing ratio will be agreed with the Assemblies” the statement added.

Dan Botwe in the letter copied to the Regional Ministers, said Government is currently in talks with stakeholders over the issue, hence the assemblies would be communicated to appropriately on the way forward.



Source: ghanaweb.com


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