Stakeholders in the real estate industry are calling on government to channel proceeds from the newly introduced VAT on real estate into Ghana?s property sector.

Ghana Real Estate

This, they indicated will subsidize housing and make it affordable.

Real estate broker and Chief Executive Officer of Isaac Anthony Homes, Isaac Boateng, held some reservations about the new tax being imposed but stressed that reinvestment in the real estate sector could justify the decision.

According to him, ?The real estate sector seems to be doing better than other sectors which is probably why the government has chosen to tax it. But it is also capital intensive and although it looks very profitable, there are a lot of costs involved, thus leaving little margins.?

For him government should channel the accrued revenue into mortgage subsidy, and that the government should look at ways of helping home buyers acquire properties on subsidizing mortgage rates because they are too high.

Also, Blue Rose Limited, a Leading real estate developer disagrees with the new tax and suggests that levies imposed on imported materials should be reduced to cushion the effect on the real estate sector.

Affordable housing in Ghana has been in the spotlight in recent years due to the housing deficit.

In view of that, government has been called upon to channel the proceeds from the new tax into subsidizing affordable housing to make it more accessible for the majority of Ghanaians.

Managing Director of property website Lamudi Ghana, Akua Nyame-Mensah, stressed that both the government and stakeholders in the real estate industry could benefit if the real estate tax proceeds were reinvested in the sector.



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