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

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government is about how much to tax local residents in order to pay for the public services they receive, so that local residents have an electoral choice about how much to be taxed for what level of local services and how properly this tax to be assessed. The objective of the strategy areas follows: a) Assess current UP performance (strengths, weaknesses, complexities etc.) with regard to the assessment, administration and collection of own-source UP revenues b) Develop a provisional strategy for enhancing – on a pilot basis – the revenue base and revenue collection performance of UPs c) Identification of new and additional expanding revenue sources for UPs self sufficiency and better service delivery including other local taxable income including fees, rates, charges and fines d) Improvements to local revenue administration procedure and collection arrangements including proper documentation, register maintenance and collection process e) Identification of motivational and awareness building program as well as incentive system for own source revenue collection f) Improvements in robust follow-up and enforcement process including monitoring and evaluation strategy g) Some related reforms including intergovernmental transfers, policy advocacy with government and local financial resource management. VIII. Sampling of UPs for Piloting For the purpose of raising revenue mobilization in capacity building of Ups for better service delivery piloting activities will be undertaken in thirty Ups of six LGSP-LIC districts (5 UPs from each of 6 LGSP-LIC districts.) The selection of the piloting Ups will be Identified by the Consultant with LGSP-LIC Project Team, UNDP, UNCDF & finalization on the basis of the outcome and completion of baseline survey. The following criteria would be followed for selecting the five Ups in each LGSP-LIC district. a. First UP will be selected from each Upazila on the basis of higher revenue target achievement as well as proper assessment on the basis of assessment procedure b. Second UP will be selected which is situated in semi-urban in nature and near to the UZHQ c. Third UP will be selected where revenue collection was not so high and not systematic assessment maintained d. Fourth UP will be selected where other sources collection was higher than holding tax if any or other sources collection was higher than any other UP in the districts 19
e. Fifth UP will be selected where holding tax assessment procedure is properly followed but the citizens are not willing/ reluctant to pay even with the UPs initiative for collection target achievement IX. Proposed Piloting Areas and Activities of Enhancing UP Revenue/Resource Mobilization The capacity building of local government units especially UP is enormous as they are responsible to manage their own affairs independently by providing service delivery with the mobilization of own sources of revenue/resources effectively. So that it is necessary to make them able to finance their activities through proper orientation and support. For this, LGSP-LIC conducted a study during 2007-8 aimed at gaining a better understanding and identifications of constraints in local government taxation system and revenue collection procedures and the scope for enhancing UP own-sources revenues/resources. With these experiences and the current field study/experiences, LGSP-LIC has developed a strategy paper by identifying some piloting areas and activities for enhancing UP revenue/resource mobilization. : Summary of the Activities of Piloting proposals below could be tested in 30 UPs. � Benchmark of piloting- The benchmark of piloting includes identifying some samples of 60 UPs for baseline survey before starting the activities of piloting on 30 UPs of 6 LGSP-LIC districts. For this, the baseline survey will be conducted by a firm/ NGOs and the findings will be presented at the dissemination workshop at the national level. After this, a. Inception workshops for piloting activities will start at every six LGSP-LIC district of Barguna, Feni, Habigonj, Narshingdi, Sathkira and Sirajgonj followed by b. Inception workshops at all the 30 LGSP-LIC UPs of 6 districts. � Effective and Improved Method of Holding Tax Assessment by introducing mass appraisal system 1. Introducing a simplified mass-appraisal system for assessing holding tax for houses, based on number of rooms and construction type, and retaining a choice over tax rates (up to the equivalent of 7% of annual rental value) .by providing training through manual development to secretary , Tax Collector, WDC and UFT for proper use of mass appraisal/ self appraisal system 20
Page 1 and 2: Local Governance Support Project- L
Page 3 and 4: ABBREVIATIONS AND ACRONYMS ADP Annu
Page 5 and 6: feed these “second generation”
Page 7 and 8: III. Legal Status of UPs Revenue Mo
Page 9 and 10: � Regular transfers from central
Page 11 and 12: official formula. 6 However, in man
Page 13 and 14: at the ceiling rate of Taka 500, in
Page 15 and 16: Table 1: Holding Tax Assessment Pil
Page 17 and 18: It should be pointed out that there
Page 19 and 20: probably be paid more than the 15%
Page 21: � increasing UPs’ share of the
Page 25 and 26: about the level of business taxes,
Page 27 and 28: � Policy Advocacy a. Policy advoc
Page 29 and 30: Ups’ self sufficiency and better
Page 31 and 32: Tax Schedule, 2003 to at least refl
Page 33 and 34: 5. Motivation and Incentive system
Page 36 and 37: Annex- 2 : Holding Tax Assessment R

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