The Ghana Real Estate Developers Association (GREDA) has renewed calls on the government to remove the 20% Value Added Tax (VAT) on housing, arguing that the levy is making homeownership increasingly difficult for Ghanaians.
According to the Association, the tax is adding to the financial burden on real estate developers and prospective homeowners at a time when the cost of land, building materials and access to financing remains high.
Speaking at GREDA’s Annual General Meeting, the Association’s President, Dr James Orleans-Lindsey, warned that continued taxation of the sector could hamper its growth and undermine efforts to provide affordable housing.
He said the industry could struggle to remain viable if additional taxes continue to drive up the cost of housing development.
“We don’t have to sit down for our industry to be overtaxed for us to go under,” he said.
Dr Orleans-Lindsey said GREDA had repeatedly engaged the government and relevant stakeholders over concerns surrounding the 20% VAT.
He noted that the Association was continuing discussions with the sector Ministry to ensure its concerns were conveyed to the government for consideration.
“I have had to repeat my stance on the 20% VAT because it is a concern to us as an association. We are working closely with our sector Ministry to carry our concerns across the government,” he said.
GREDA believes removing the VAT would ease the financial pressure on developers and help make housing more affordable and accessible to Ghanaians.
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