Bagbin Justifies Scrapping Of 5-Year Tax Holiday For Real Estate Developers

The Minister for Works and Housing has emphasized that government’s decision to scrap the five-year tax holiday for real estate developers is in line with its policy to ensure more affordable housing for Ghanaians. The 2011 budget proposed the abolition of the tax holiday because government says it is being abused. It however adds that companies interested in building affordable houses can still enjoy the facility if they partner with the Works and Housing Ministry. Mr Alban Bagbin told Joy Business the policy is being better targeted. “The policy is now being abused by some of these local real estate companies who are investing in condominiums and luxurious houses for the upper class who do not tax holidays so we are emphasising that for any company to enjoy these tax holidays, you have to partner government,” he stated. The minister said real estate companies were profiting from “the sweat and toil of all of us because the money they [make as a result of the tax holidays] are entering into their private pockets.” Source: Joy Business/Ghana