5% VAT cut on housing will boost sector – GREDA
The Ghana Real Estate Developers Association (GREDA) has described as timely government’s decision to scrap the 5% VAT on cost of real estate.
According to the Executive Secretary, Samuel Amegayibor, the tax cut will create more opportunities for real estate development in the country.
His comment comes after Finance Minister, Ken Ofori-Atta announced that government has abolished 5% VAT on real estate cost in the country.
The levy was introduced by the erstwhile Mahama administration but was very unpopular among estate developers in the country. GREDA had for some time now pushed for the tax to be removed as they described it as a nuisance levy.
In fulfilment of their electioneering promise to the business community, the Akufo-Addo government abolished about eight nuisance taxes and reduce five to cushion business in the country to resuscitate Ghana’s ailing economy.
Speaking on Asempa FM’s Ekosii Sen programme Friday, the GREDA boss was full of praise for government for heeding to their plea.
“It’s good news. That has been what we wanted in the past. Our argument has been that, if you look at the housing fee, I don’t think introducing additional taxes was the best to go,” he noted.
With the bottlenecks removed, Mr. Samuel Amegayibor said they have the needed incentive to work assiduously to reduce Ghana’s housing deficit.