The Prospects and Challenges of Property Rate Collection in Ghana: A Case Study of Tema Metropolitan Assembly

Abstract

The research examined the prospects and challenges of property rate collection using the Tema Metropolis as a case study. The benefit and co-production theories, and distributive justice policy framework that reinforce the importance of payment of the tax by the citizenry were utilized. Property income is a vital source of local income generation tool worldwide. Notwithstanding its prospects as a reliable source of revenue, its administration has not produced the anticipated outcomes in most developing countries including Ghana. To achieve the objectives of evaluating the prospects and challenges of property rate collection, the study employed the mixed-method research design that attempts to describe the actual happenings on the field. The study used in-depth interview and questionnaires to collect data for analysis. The research discovered that there are huge chances for property rate to generate enough revenue to augment the District Assembly Common Fund (DACF) for use by the local government to perform their constitutional duties. The study further revealed that property tax administration is manual. This creates lot of difficulties such as political intrusion, outdated valuation list, outmoded system of bill distribution and revenue collection, boundary dispute, poor cadastre and property registry system and outdated rating valuation process that hampered the potentials of property tax. To enhance revenue generation through property tax, the study recommends the introduction of Internet Communication Technology (ICT) into property tax administration, political neutrality, human and logistic resource and capacity building of personnel. It further recommends that some percentage of property tax collected is reserve directly for basic public service advancement within the various localities under the authority of the district, which will enhance income generation.