The Ghana Real Estate Developers Association (GREDA) wants government to come clear on its new terms in granting tax holidays to new estate developers.
Although GREDA describes the news as welcoming, it says its members need further clarification on how the tax holiday will be of benefit to the industry.
“It is welcoming except that we want to understand what the new terms are; definitely there has to be something new and beneficial as an incentive for the real estate developers. So we want to know the full content of what this policy is going to do,” Executive Secretary of GREDA Sammy Amegayibor said.
A 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.
Mr. Sammy Amegayibor, who spoke to Citi Business News said the move when it materializes, will solve some major challenges facing the industry.
“It is one part of the solutions to the challenges that players in the industry are having. In housing, it takes a very long time to start a project and so five years for real estate developers as an incentive to enjoy some tax relief, is really good for the industry for one reason. That the five years will give sufficient time for the companies to properly pop up and be ready to take the mantle on,” he added.
Ghana’s housing industry has been faced with huge challenges.
Currently, the country faces a huge housing deficit estimated at 1.7 million
Government has since tried to sanitise the industry to make it more lucrative for investors.
Government has proposed a land bank policy to address the rising housing deficit by the end of the year.
The program has become necessary as the issue of land acquisition has been cited as one of the basic issues contributing to Ghana’s housing crisis.
Under the policy, custodians of lands such as traditional leaders will offer available concessions to estate developers to be developed and repaid under agreed and flexible terms.
GREDA has since called on government to ensure the project is achieved by the end of the year.