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The Council of Indigenous Business Associations (CIBA) has asked the government to ensure that the new Income Law is passed before the current Parliament is dissolved.
In a statement, CIBA said that the new bill, if it becomes law, will reduce the burden of the exorbitant advance in income on the working class, especially the companies of the Micro, Small and Medium Enterprises (MIPYMES) in the country .
“We envisage a new rental regime that is very friendly to the circumstances of MSMEs throughout the country and that the relevant state institutions strictly enforce to eliminate all the illegalities that are currently being perpetrated in the housing sector against tenants and release significant pressure on the working capital of MSMEs in the country to prosper, ”said the group.
The group further said that the advance payment of rent, which is a feature of Ghana’s moribund Income Law (Law 220), has been one of the biggest challenges facing SMEs in the country.
CIBA said companies are forced to pay exorbitant amounts to secure buildings in advance, while these funds could be injected into other things that can boost their businesses.
The group is hopeful that the new bill will address the problem.
Imagine an entrepreneur who has to mobilize funds to rent a property for years, be it a store or a residential accommodation. That will mean that more than half of the amount will go to rent, “CIBA said in a press release issued in Accra,” they said.
Dr. Bawumia announced earlier in July that the government is designing a policy framework that will address rental problems in the country.
He said the government is working to replace the current and moribund Ghana Rentals Act (Act 220), which was passed in 1963 with a new Rent Control Bill that will be presented to Cabinet and later to Parliament, for approval. .
CIBA is also calling for the new bill to be passed and promulgated before the current Parliament is dissolved.
The group further noted that the Rent Control Department is operating under an old law when so much has changed since the law was passed in 1963.
“The department must have the necessary resources to be able to bite. It must be well positioned so that they can judge and make their own decisions and not always refer cases to the courts or else passing the law will be one of those good ones and will not bite, ”they said.
