The Ghana Real Estate Developers Association (GREDA) has described as a “negotiated deal”, the decision by government to reduce the Value Added Tax (VAT) to cover the sale of houses to 5%.
Government revised in the 2015 budget statement, its decision to slap 17.5% VAT on the real estate sector after serious concerns were expressed by GREDA.
GREDA petitioned government to find a more effective way of taxing the industry to ensure government and the private sector contribute in closing the housing deficit.
Citi Business News has learnt GREDA was proposing 4 % VAT during discussions with government.
The Vice President Paa Kwesi Amissah-Arthur in February,2014 maintained that government was right to tax the real estate sector.
This was despite concerns from players in the industry that the move could lead to a hike in prices of houses in the country.
But according to the First Vice-President of GREDA, Patrick Ebo Bonful the latest decision to review the taxes by government is fair.
“any reduction in taxes is welcome news, …it is fair and in terms of the effect on our figures going forward , we are going to sit with them and see the details as to its implementation” he stated.
By: Rabiu Alhassan/citifmonline.com/Ghana