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

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new functional arenas such as micro-infrastructure, early child development, consolidated implementation of safety net programmes, and local economy promotion. With regard to the financing of UPs, the NSAPR envisions potential in consolidating a performance-linked second resource channel (outside of ADP) for union parishads. Such a resource channel has already been initiated and substantial increase in resource allocation can be planned for with due lesson-learning from the experience so far. Importance of local government has been also recognised by National Rural development Policy and Poverty Reduction Strategy Paper I (PRSP). Similarly, the second PRSP underlines the roles and importance of local government to intervene the some important areas of multi-dimensional nature of poverty. The present government has taken some initiatives for a greater participation in local governance and wider involvement of local government representatives. The government has passed the Local Government (City Corporation) Act, 2009 in parliament on October 15, 2009. The Local Government (Paurashava) Ordinance (1998) was revised in 2008 and has created further scope for more power and authority to the Pourashava bodies as well as changed the designation of Chairman and Ward Commissioners as Mayor and Councillors. The Present Political Government passed the Local Government (Pourashava) Act, 2009 in the parliament. The Upazila Parishad (UZP) has been re-established after around 19 long years. The Upazila Parishad election was held under Upazila Parishad Ordinance 2008 promulgated by Caretaker Government. But the elected government formed in 2009 did not ratify the ordinance of 2008; as a result, the UZP Ordinance 2008 lost the forces of law. The Upazila Parishad Act 1998 has been freshly re-enacted and enforced with few amendments in 2009 after 10 years of inaction. The UZP Chairs and Vice-Chairs and the Parishad got its legitimacy under UZP Act 1998 as adopted in 2009. After the independence of Bangladesh, the first major initiative to enact an ordinance for union parishads was taken in 1983 and the Local Government Ordinance (Union Parishad), 1983 was promulgated by the then military government. Only minor changes have been made in the ordinances/acts over time. 2 The Caretaker Government gave much importance to Union Parishad as a key tier of local government and local development and revised the existing ordinance to provide more authority, responsibility and financial resources to UPs. This ordinance has further strengthened UPs capacity for a good public service delivery. The elected government has ratified the ordinance as Local Government (Union Parishad) Act, 2009 only with few amendments have been made by the parliament. 2 See Musleh Uddin Ahmed. Local self-government System in Bangladesh”, in Prof. Abul Kalam (ed.), Bangladesh Internal Dynamics and External Linkages, Dhaka : University Press Limited, August, 1996. pp. 73-89. 3
III. Legal Status of UPs Revenue Mobilization In Bangladesh, the Union Parishad is the oldest local government institution. The UP is an elected body composed of 13 members; one from each of the nine wards, three women members (from reserved seats – one from each of three wards) and the chairman elected by the total electorate of the UP. The Union is staffed by a full time Secretary, appointed by the Deputy Commissioner who is head of district administration and local police (1 Dafadar and 9-12 Gram Polices). The UP Secretary is responsible for accounting and record keeping and all kinds of registration e.g. birth, death etc. Very recently, government has posted an Accountant cum Computer Operator at UP. The Local Government (UP) Act, 2009 assigned it with 38 functions. The functions of UP are wide ranging. In reality, the UPs are mostly involved in the selection and implementation of schemes, sanitation programs (latrines), local level revenue collection, registration of births and deaths, social safety net activities such as, distribution of relief goods and Vulnerable Group Feeding (VGF), preparation of list of widows for pension distribution and organization of food/cash for work activities (popularly known as Kabikha); maintenance of law and order including conflicts resolution and administration of justice (village court). The Act also empowers the UPs to monitor the functions and activities of the Union-level officials of the service delivery departments of the central government and report on their performances to the higher authorities located at the Upazila. Section 53(ii) and section 65 of the Local Government (Union Parishad) Act, 2009 mandated the UPs to generate revenue/resources from some particular sources by imposing taxes, rates, fees, tolls fines and other charges within their administrative boundaries and the section 68 authorised the UPs to collect the taxes to meet their expenditure and finance their own development activities. 3 Section 66 of the act also empowered the government to formulate the new Model Tax Schedule. But the present UP Model Tax Schedule was formulated in 2003 under the Section 55 of the Local Government (Union Parishad) Ordinance, 1983 which has described the imposition of holding tax (buildings and land), fixed amount taxes on 93 items of business, trades and professions, taxes on advertisement, cinemas and some vehicles. 4 The detail tax assessment system and collection procedure has discussed in the section 22 to 30 in chapter III of the Union Councils (Taxation) 3 GoB. Bangladesh Jatiya Shangshad, The Local Government (Union Parishad) Act, 2009. Dhaka, Bangladesh Gazette, 15 Oct., 2010 4 GoB. Bangladesh Jatiya Shangshad, The Union Parishad Model Tax Schedule, 2003 Dhaka, Bangladesh Gazette, 06 Dec., 2003. 4
Page 1 and 2: Local Governance Support Project- L
Page 3 and 4: ABBREVIATIONS AND ACRONYMS ADP Annu
Page 5: feed these “second generation”
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 and 22: � increasing UPs’ share of the
Page 23 and 24: e. Fifth UP will be selected where
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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