Ghana’s parliament would have to review the criteria for disbursement of the District Assemblies’ Common Fund, according to a professor with the Kwame Nkrumah University of Science and Technology (KNUST).
Government
is mandated to allocate a proportion of collected national revenue to the local
assemblies to drive development.
But
land economist, Prof. Seth Opuni Asiamah, says conditions for selection and
sharing of the common fund must be tied to the property rate collection
potentials of each assembly.
“I
don’t see, for example, why AMA, KMA and STMA should be paid huge sums of money
from the district assemblies common fund when there are poor assemblies who
cannot afford because the kind of revenue that they are collecting from
property rate are so low; yet we give all the money to the big assemblies,” he
stated.
Prof.
Asiamah has observed the Accra, Kumasi and Secondi-Takoradi Metropolitan
Assemblies have huge opportunities to generate revenue from property rate collection.
He
spoke in an interview at a symposium in
Kumasi on the value of commercial properties and the effect on doing business
in Ghana, organized by at Good Governance Africa (GGA) – West African
Centre, an independent research and advocacy organization.
The
event was on the theme: “Towards Improved Revenue Generation in Ghana: The Role of the
Development and Use of Commercial Properties in Ghana”.
According
to Prof. Asiama, cities and towns are not development to a faster pace because
assemblies receive cheap money from the Common Fund, hence fail to be proactive
in property rate collection.
He
is also advocating taxation on idle lands to compel people to develop their
lands “rather than leaving them idle and creaming off profits when the value
has increased and just have to sell them”.
Head
of Land Economy Department at the KNUST, Jonathan Ayitey, says the real estate
industry has huge capital potentials yet to be tapped.
He
identified and categorized commercial properties in Ghana and the key drivers
of rents and rates for commercial properties in urban settlements in Ghana.
Participants
commended GGA for providing the platform to enlighten the public on the
opportunities and challenges in the sector, especially in rent charges.
Chief
Executive of GGA-West Africa, Tina Asante-Apeatu, says outcomes of the
engagement will be put into policy papers to drive national planning.