Central–Local Government Relationship, Digital Technology, and Property Tax Administration in Developing Countries: A Comparative Analysis of the Ghanaian Case

Property tax is recognised as a crucial financial tool for local governments to support development initiatives. Its administration – that is, the identification, valuing, taxing, and collecting revenue from real property within a jurisdiction – however, remains problematic. Recently, some scholars have asserted that this problem can be resolved through the introduction of technology, which many governments have now adopted. Unfortunately, the problems of property tax administration (PTA) continue to persist. This persistence can be attributed to the relationship between central and local governments, where the former keeps constraining the latter’s ability to function as the administrators of property tax through omissions and commissions. Using Ghana as a case study, the article asks: How does the central–local government relationship impact PTA in developing countries despite the introduction of technology in this endeavour? From a political economy perspective, the article argues that the persistence of this issue stems from the failure to examine tension in the central–local government relationship and how it affects PTA. It proposes ways to resolve the tension between the two levels of government.