Although Ghana’s real estate industry welcomed the government news to grant tax holidays to new estate developers, it seeks further clarification on how it would benefit the industry at large.
Specifically, the Ghana Real Estate Developers Association (GREDA) wants the government to come clear on its new terms in granting tax holidays to new estate developers.
The association has called for transparency regarding the terms and incentives offered by the government to local property developers, namely the full content of the announced tax policy.
Deputy Minister of Works and Housing, Eugene Boakye Antwi, has stated that first-time estate developers would be granted tax holidays for five years to attract more investments into Ghana’s real estate sector.
When it comes into effect, the policy will have a significant impact on the major challenges currently facing the industry.
According to GREDA, housing projects usually take a very long time to materialise in the country. Five years for real estate developers as an incentive to enjoy some tax relief is beneficial for the industry. Therefore, the five years will give sufficient time for the companies to plan and execute the project properly.
Ghana’s housing industry is facing numerous challenges, including a significant housing deficit estimated at 1.7 million homes.
The government has since proposed a land bank policy to address the rising housing deficit by the end of the year. Land acquisition is considered one of the main concerns contributing to Ghana’s housing crisis.
Under the policy, certain landowners will offer available concessions to estate developers for development and repayment under agreed and flexible terms.
Also, Ghana’s authorities have taken measurements to make the property sector more attractive and lucrative for investors. The proposed tax holidays are expected to boost development and confidence in the property industry.
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