AMA to increase property tax by 10%
By Masahudu Ankiilu Kunateh, Ghanadot
Accra, Sep 3, Ghanadot - The Accra
Metropolitan Assembly (AMA) has announced that it would
increase fees and rates on properties by 10% with effect
from next year, 2010.
Dr. Alfred Okoe Vanderpuije, Chief Executive Officer of AMA,
disclosed this at meeting with property owners in Accra.
He attributed the proposed increase to high inflation
pressures, anticipated increase in salaries and cost of
provision of services among other things.
On benefit of increasing the property tax, the AMA Boss said
the Assembly would be able to effectively and efficiently
undertake its activities since it was one of the Assembly’s
best means of generating funds internally.
“Unlike external funds, there are no strings attached in
deciding how to use this source of revenue; it is the only
fund over which we can fully exercise our authority to
achieve our goals,” he added.
According to him, details of the increase would be discussed
at a meeting which would be held between the Assembly and
trade associations later this year.
Dr. Vanderpuije announced that in 2008, the Assembly was
able to collect GH¢30,354,666.25 as against a projection of
GH¢43,194,065.23 which represented about 70 per cent dropped
of estimated revenue.
The Assembly needed money to sustain its decongestion
exercise, build new markets, implement its waste to energy
programmes, build new libraries and maintain lorry parks, he
“We will also need money to build more schools thereby
putting a stop to this shift system being run by some 136
schools in the metropolis and also end the ‘Lavender Hill’
situation (euphemism for bad odour) with respect to liquid
waste disposal,” he added.
Dr. Vanderpuije expressed dissatisfaction about the
unsanitary condition in some parts of the metropolis adding
that for last year, the Assembly spent 59 per cent of its
total revenue on sanitation, but the situation does not
He mentioned the fraudulent practices by some revenue
collectors, refusal of rate payers to honour their tax
obligations, poor awareness creation on tax payment and
non-prosecution of tax defaulters as some of the reasons
that hindered revenue generation by the Assembly.
Dr. Vanderpuije pledged that the Assembly would put in place
all the necessary measures to ensure that all the leakages
in tax collection were sealed.
The AMA boss said the Assembly would soon ensure that
building permits were approved or rejected within three
months of application and urged those building without
permit to stop.
He called for an increase in the GH¢50 default fees in order
to serve as a deterrent to the practice.
Mr. Desmond Biney, Presiding Member of the Assembly, urged
all property owners to honour their tax obligations on time
for the Assembly to fully finance its activities.