News

Feature: Imposition of rates and fees; dilemma of the Offinso North District Assembly

• By EDMOND GYEBI
• January 03, 2019
• 33

 The amended Local Government Act 936 that replaces Act 462 mandates all Metropolitan, Municipal and District Assemblies (MMDAs) to seek and discuss with businesses before fee fixing resolutions.


      Thus raise and improve the Internally Generated Funds (IGF) to push development of the various Assemblies in the country.


     Adoption of realistic fee fixing will not only increase MMDAS’s Internally Generated Funds (IGFs), but will also create healthy relationship between Assemblies and tax payers in local revenue mobilization.


     MMDAs will always win the confidence and support of local citizens and successfully gazette their fee fixing resolutions if local residents and citizens are actively engaged in fee fixing resolutions and other decisions in the Assemblies.


     In fact fee fixing resolution is one of the major revenue generation points of any Assembly, and undoubtedly, MMDAs cannot undertake any development project if the citizenry failed to pay taxes, fees and rates.


      Since 1992, the development of every Assembly has been on its IGF and it is through taxes and rates that Assemblies are able to bring good governance, energy, water and road infrastructure to the people and build school infrastructure as well.

     Thus, need for concerted efforts to push active citizen’s engagement and participation in fee fixing resolutions of MMDAs.


     Effects of the non-involvement of businesses in the fee fixing decisions of MMDAs are enormous - evasion from fee payment, clashes between fee collectors and business owners, creation of unhealthy relations between business owners and the Assembly.


     There is also destabilization of the business environment for the conduct of businesses, collapse of businesses and closure of businesses.


     Potential benefits of involving businesses in fee fixing decision include good relations between business owners and MMDAs thereby increasing compliance in paying fees and rates and taxes, creation of business friendly environment and reduction in the cost of doing business in a District.


     If profits and incomes to businesses increase, automatically it affects Assembly‘s revenues to further improve and improves business environment for improved businesses performance.

 

     Offinso North District Assembly  


    But, the IGF strength of the Offinso North District Assembly keeps on declining to imposition of fees and rates by the Assembly.


    There is no consultation with business owners when the Assembly decides on the fees and rates to be paid by businesses in the district.


     According to the Offinso North District Business Owners Association (ONDOA), “business owners are not part of the decision making process during fee fixing”.


     Rather, the Assembly decides and only announces the fees to businesses to pay, Says Mr Maxwell Nkansah, the Chairman of the ONDOA, a business association which has 868 members.


     The fees fixed are often exorbitant that the business owners are unable to pay.


    The non-compliance in paying such fees lead to frequent clashes between them and the Assembly with continuous disturbances that collapses several businesses in the district.


     “I believed the Assembly has not realized our contributions to its development and the fact that we can do more when we are given assistance to improve in our performances as businesses”, Madam Josephine Oppong, the treasurer of ONDOA stated.


     “For me, I think, we need to engage authorities at the Assembly to understand this, that we are in business together and that our success is theirs. I am very hopeful that by the end of this action, when we shall have engaged them in dialogue, we would succeed in getting involved in the fee fixing decisions of the Assembly”.


    ONDOA/BUSAC GHC80,000 Advocacy Action


     With support from the Center of Posterity and Interest Organisation (COPIO), a Non-governmental Organisation, and service providers, ONDOA has sought funding from the Business Sector Advocacy Challenge (BUSAC) Fund implementing a project in the district.

     

     Estimated at the cost of GHC80,000, the nine-month advocacy project, titled “advocating for active participation of business owners in fee fixing resolution in Offinso North District”, seeks to deepen active engagements of businesses in decision making of the Assembly.

    

     This will provide space for members and the voices of members of other businesses associations articulated and heard during fee fixing resolution meetings, Mr Alex Yaw Barimah, the Secretary of the ONDOA stated.

 

      He commended BUSAC and its partners – DANIDA, USAID and EU and COPIO for the support towards the implementation of the project, which is yielding desirable results.

 

     Way forward

    

    Dr John Yaw Akparep, a consultant of COPIO in an interview underscored the need for the Offinso North District Assembly to build good relationship with the business owners and associations in the district and bridge the structural gap between them.

   

    This will improve interactions and ensure peaceful co-existence between the Assembly and the businesses to enhance the Assembly’s IGF mobilization and facilitated socio-economic development of the area.

    

     Dr Akparep who is a Lecturer at the University of Development Studies (UDS), entreated authorities at the Assembly to endeavour and consult business owners and associations in making decisions on fee fixing.

    

     The Assembly should ensure that fees fixed and charged in the District are agreed upon by all stakeholders, including the business owners to ensure collective sense of responsibility towards generating revenue to develop the District for all.

    

     It should also provide field staff with adequate education on how to interact with the fee payers to avoid rifts between them in the District as well as intensify public education on fee fixation and fee collection.

    

     Dr Akparep advised the assembly to exhibit a good level of transparency and accountability in the administration of funds, and use them judiciously to motivate tax payers to continue to pay their fees and rates.

Source: www.watchghana.com/ K Peprah, Akomadan