Framework for a Strategy of UP Revenue/Resource Mobilisation ...

equire a separate exercise to check against the assessment register to identify who had not paid. In
practice, lists of defaulters are not produced for purposes of follow-up, and there is no record of
arrears. Although claims are made about follow-up action, it is doubtful if this really happens.
Collection rates are generally very low. It is likely that in most UPs, only 5% to 20% of households
are paying. This is generally explained in terms of people being poor, problems of floods, and
reluctance of elected Chairmen to take unpopular enforcement action. A few places have managed
to increase collection rates significantly. It is observed that collection rates for UPs in Sirajganj
district as a percentage of budgeted revenue, ranging from 1% to 91%. However, budgeted figures
may not reflect the full potential revenue (especially if arrears are not included), so these figures
may overstate the performance. Moreover, a significant proportion of the revenue may be paid by a
few business or institutional payers. For example, one UP visited (Gopaya in Narshingdi district)
had managed to collect around half of amount holding tax due in 2007/08, but 70% came from just
five institutional payers. The remaining 30% came from 580 other payers (17% of households),
while 83% of households paid nothing. In another UP (Nurpur), receipts were issued to 400
households (12% of the total number of households), and money received amounted to 18% of the
total assessment.
V. Improving UP Assessment System, Administration and Collection Procedure
a. Holding Tax Assessment by Improved Method of Mass-Appraisal System
What is proposed for piloting in some UPs is a simpler and more transparent assessment system,
commonly known as mass appraisal. 11 . A simple table is provided in the following showing house
construction types and numbers of rooms (construction type will need to be defined precisely
enough so as to minimize scope for manipulation). From that, it is very easy to assess a particular
house. It uses five grades of construction and up to four rooms. For houses with more than four
rooms, a rate per sq ft can be used. It includes one category of shop (up to 100 sq ft), being the most
common type of non-residential property in UPs. The assessment figure might be increased by
10%. (private water supply and toilets would not be included in the assessment) where UP provided
water supply (tube well or piped) is available on the plot,
11 See Nick Devas (July 2007): Local Revenue Sources for Union Parishads: Report of a Study; and Nick Devas
(September 2008): Enhancing Revenue Sources for Union Parishads
11