A Professor of Finance and Risk Management Department of Finance, University of Ghana Business School, Elikplimi Komla Agbloyor, says Ghana does not need higher property tax rates, but rather needs a property tax system that works.

In an article, “Changing the Narrative: From Persistent Fiscal Deficits to Fiscal Surpluses Part II: Property Taxes”, Professor Agbloyor pointed out that Ghana’s property tax system can be significantly improved with a better and well thought out design, arguing that with a simpler assessment rule, better digital integration, and smarter enforcement, property taxes could become one of the most reliable pillars of domestic revenue mobilisation.

“Despite rapid urbanisation, rising real estate values, and visible accumulation of property wealth, Ghana collects between 0.1% and 0.5% of GDP from property taxes. This is exceptionally low by international standards. In OECD countries, property taxes average around 2% of GDP, rising to 3–4% in high-performing systems such as the United Kingdom and France. The implication is straightforward: Ghana is leaving substantial, stable, and relatively equitable revenue on the table—revenue that could finance roads, drainage, sanitation, and other local infrastructure”, he alluded.

The writer who is also the Chair of Research Committee, Tesah Capital proposed some reforms that will ensure an effective property tax system. They include a simpler rule: one month’s rent.

Benchmarking Property Tax to Rental Income

According to him, a more effective approach is to benchmark property tax to rental income, rather than estimated capital values. “Specifically, property tax could be set at the equivalent of one month’s annual rent”.

He added that rental values are an economically meaningful proxy, stressing that they reflect location, size, quality, inflation, and affordability. “Unlike capital valuations, rental benchmarks are observable, regularly updated, and easier for citizens to understand”.

He continued that this approach also dramatically reduces administrative costs. “Instead of frequent valuation exercises, tax authorities rely on rental data already generated by the market”.

National Digital Lands and Property Registry

Another reform is “How a National Digital Lands and Property Registry Would Work in Practice”.

According to Professor Agbloyor , the proposed National Digital Lands and Property Registry is designed as a fully integrated, end-to-end digital system that brings together land ownership, property use, rental information, and tax enforcement into a single national platform.

“Its effectiveness depends on inter-agency coordination, digital integration, and automatic data flows, rather than manual enforcement”, he mentioned.

To operate successfully, he noted that multiple public and private institutions must be connected. These include the Lands Commission, Ghana Revenue Authority (GRA), National Identification Authority, GhanaPost’s Digital Addressing System, Rent Control Department, utility companies (notably ECG), payment system providers, online property platforms, the Courts, and the Births and Deaths Registry. According to him, each institution contributes a specific data layer, ensuring accuracy, traceability, and legal integrity.

He also revealed that at the core of the system is the requirement that every parcel of land and property has a Unique Digital Identifier (UDI). This identifier links the property to its GhanaPost address, the owner’s national ID, the relevant MMDA, and utility accounts.

“All land registration, transfers, and property transactions would be conducted fully online, eliminating the need for physical visits to the Lands Commission”, he stated.

Why this Matters

In conclusion, Professor Agbloyor said at approximately 1% of GDP, the proposed reform would effectively double Ghana’s property-tax-to-GDP ratio.

In fiscal terms, he added that this amount is material. “It represents a meaningful share of projected capital expenditure and could significantly reduce the need for domestic borrowing”.