Focus on Property Tax and Informal Sector to Boost Revenue Prof. Quartey Urges Government

Property tax and Ghana’s revenue collection ACCRA, Ghana  Prominent economist and former Director of the Institute of Statistical, Social and Economic Research (ISSER), Professor Peter Quartey, has urged the government to capitalize on untapped domestic revenue streams to address ongoing fiscal deficits. Speaking on TV3 NewsCentral on Thursday, July 23, Prof. Quartey emphasized that critical sectors specifically property taxation and the vast informal economy remain under-leveraged despite offering immediate opportunities for revenue generation. Property tax and the revenue shortfall Addressing widespread concerns regarding early-year revenue underperformance, Prof. Quartey noted that initial shortfalls follow a typical seasonal trend in Ghana’s fiscal calendar. "The shortfall is still quite significant, and I am not surprised everybody is raising the issue," Prof. Quartey stated. "Usually, first-quarter revenue is not as high as expected; performance typically picks up in the second and third quarters." Unlocking Low-Hanging Fruits: Property Taxes and the Informal Economy Despite seasonal recoveries, Prof. Quartey argued that Ghana is failing to collect substantial revenue from high-value assets across the country. He described property rates as "low-hanging fruit" that could significantly shore up the national coffers if properly managed. "There are many beautiful, high-value properties across the country, but I am not sure we have mastered the process of taxing them," he observed. "The amount raised from property rates in the first quarter remains insignificant, and it is time we strategically maximize revenue from that sector." In addition to property rates, the economist pointed to Ghana’s expansive informal sector as another major area requiring structural tax reform. He noted that millions of individuals engage in lucrative economic activities without contributing adequately to the national tax net. While acknowledging ongoing state efforts, he stressed that bringing the informal sector into the fold remains a critical "work in progress." Ghana Lags Behind Sub-Regional Peers Highlighting the urgency for reform, Prof. Quartey warned that Ghana's revenue-to-gross domestic product (GDP) ratio continues to trail behind several peer nations within West Africa. He concluded that broadening the tax base rather than overburdening existing compliant taxpayers—is essential for achieving fiscal stability and closing the gap with regional counterparts. More coverage: GM247 News business.