GREDA renews call for scrapping of 20% VAT on housing

The Ghana Real Estate Developers Association (GREDA) has once again urged the government to eliminate the 20% Value Added Tax (VAT) on housing, citing that the tax is making it more challenging for citizens to own homes. The Association argues that this levy is increasing the financial strain on real estate developers and would-be homeowners, particularly during a period when land prices, construction materials, and access to financing remain elevated.

During GREDA's Annual General Meeting, the Association's President, Dr James Orleans-Lindsey, cautioned that maintaining this taxation could hamper the sector's growth and hinder efforts to provide affordable housing. He emphasized that the industry could find it difficult to remain profitable if the current tax climate continues to inflate the cost of housing development. "We don’t have to sit down for our industry to be overtaxed for us to go under," Dr. Orleans-Lindsey stated.

Dr. Orleans-Lindsey highlighted that GREDA has consistently communicated with the government and pertinent stakeholders regarding their apprehensions over the 20% VAT. He reiterated that the Association is actively engaged in ongoing dialogues with the sector Ministry to ensure their concerns are relayed to the government for consideration.

"I have had to repeat my stance on the 20% VAT because it is a concern to us as an association. We are working closely with our sector Ministry to carry our concerns across the government," he added.

GREDA maintains that scrapping the VAT would alleviate financial pressure on developers and contribute to making housing more affordable and accessible for Ghanaians.