Ayariga Targets GH¢20bn Property Rates For Assemblies

Minister designate for Local Government, Chieftaincy and Religious Affairs, Mahama Ayariga has stated that Metropolitan, Municipal and District Assemblies (MMDAs) could generate approximately GH¢20 billion annually from property rates if the country's property rates are properly identified, valued and collected. As part of his priorities if approved by Parliament, Ayariga plans to enhance the internally generated revenue capacity of the Assemblies.

He emphasized that the Constitution envisions assemblies to be financially self-sufficient, primarily relying on revenue from central government to support development. However, he acknowledged that the country has not achieved this objective, resulting in MMDAs heavily depending on transfers from central government. Ayariga highlighted that Assemblies possess significant untapped revenue potential, especially from property rates, basic rates, market tolls, lorry park tolls and other levies under the Local Governance Act.

Preliminary analysis with experts suggested that property rates alone could yield close to GH¢20 billion yearly for the Assemblies. The low collection levels were attributed to a lack of comprehensive information on properties and their values, coupled with challenges in collecting at the local level. Ayariga proposed a nationwide exercise to identify, describe and value properties to determine appropriate rates.

He also advocated for the digitisation of the collection system to minimize leakages and prevent diversion of collected revenue. Additionally, he pointed out that political and social relationships at the local level could hinder revenue collection, particularly when MMDCEs expected to collect rates from influential figures within their communities.

To ensure transparency and prevent misuse of collected revenue, Ayariga emphasized the need for a robust system that reduces human intervention and directs the funds through transparent channels. Rapid urbanization created substantial economic opportunities for local authorities, which could be leveraged to fund development, he said.

Examples included districts hosting major economic facilities like the Ghana Airport Company, which could generate substantial local revenue from economic activities.