The Government of Ghana has announced a major shift in fiscal policy by abolishing the centralised collection of property tax by the Ghana Revenue Authority (GRA).

The move aims to strengthen fiscal decentralisation and empower Metropolitan, Municipal, and District Assemblies (MMDAs) to enhance revenue mobilisation at the local level.

The announcement was made by the Minister for Local Government, Religious and Chieftaincy Affairs, Mr. Ahmed Ibrahim, during his keynote address at the Urban Property Tax Workshop held in Accra.

The three-day event, organised by the Africa Cities Research Consortium (ACRC) in partnership with People’s Dialogue on Human Rights Settlement and the Local Government Network (LOGNET), brought together local government officials, urban policymakers, and global experts to discuss reforms in property tax systems across Africa.

Mr. Ibrahim criticised the previous arrangement where the GRA centrally managed property rate collections, arguing that it deprived local assemblies of much-needed internally generated funds (IGF) and limited their ability to provide essential services.

“The centralisation of property rate collection has hampered local development and weakened the fiscal autonomy of our assemblies. “The President has made it clear—we are not going back to that model. The suspension of the GRA’s vendor system in the 2023 budget was only the beginning. Full responsibility for property tax collection is now being returned to the MMDAs.” ” he said.

As part of broader fiscal decentralisation efforts, Mr. Ibrahim revealed that the government is working on policy measures to help assemblies boost their financial capacity.

These include proposals to reintroduce municipal bonds and pass a Local Government Borrowing Act, which would enable MMDAs to access capital markets for development financing.

The Minister emphasised the importance of collaboration among key institutions, including the Land Valuation Division, local authorities, and private sector partners, to address challenges associated with land valuation and property tax administration.

He also urged participants at the workshop to explore digital innovations to modernise tax systems, improve transparency, and boost taxpayer confidence. The use of technology and increased citizen engagement, he noted, would improve compliance and ensure visible returns from tax payments.

Mr. Ibrahim further highlighted the ministry’s collaboration with the ACRC in producing the Accra City Foundation Report, which identified key areas for reform in urban governance, particularly in land and property tax systems.

“This workshop presents an opportunity for stakeholders to share best practices, enhance institutional coordination, and build systems that are transparent, efficient, and citizen-focused,” the Minister concluded.