Mid-year budget: GREDA calls for removal of 17.5% VAT on immovable properties

Real estate sector stakeholders are expressing frustration over the government’s decision to reintroduce a 17.5 percent Value Added Tax (VAT) on the sale of immovable properties.

They argue that this tax is stifling sectoral growth and criticize the government for not consulting with industry players before reintroducing it.

They are urging the government to abolish this tax as part of its commitment to avoid introducing new taxes in the upcoming mid-year budget review scheduled for Tuesday, July 23rd.

Samuel Amegayibor, Executive Secretary of the Ghana Real Estate Developers’ Association (GREDA), stated, ‘They never consulted us. Suddenly, there was a directive to implement the tax, and guidelines were developed without involving major stakeholders like GREDA.

So how do you expect us to be your agent of tax collection and you don’t involve us in the guidelines, and then you just snap on us? I was surprised. I saw a copy of this guideline just last night. ”

He added: “As the Executive Secretary of GREDA, I have not seen what my sector is supposed to help implement for the government to make revenue. Then what are we doing? I think these are some of the things that we are talking about.