LOCAL GOVERNMENT TAX

ADMINISTRATION
BACHELOR OF SCIENCE IN
TAXATION
 Introduction
What is Local government?
 Local government is a form of public
administration that acts within the powers
delegated to them by legislation or directives of
the central government to govern a small group
of people in a certain area of jurisdiction.
 Objectives of local governments
• Local Gov’t authorities play an important role
in the delivery of public services in Tanzania.
• Theses authorities exist for the purpose of
consolidating and giving more powers to the
people to competently participate in the
planning and implementation of the
development programmes within the respective
areas and generally throughout the country.
 Categories of local government
Local government in Tanzania has been
categorized into
a) Urban Authorities
b) Rural Authorities.
 Categories of local government.......
continue
A. Urban authorities
• Responsible for the administration and
development of urban areas including
townships, municipals and cities
B. Rural authorities
• Rural authorities responsible for
administration and development of low levels
of local authorities including Villages, streets,
wards, and districts.
 Functions of local government
Authorities
A. Main and general Functions:
a) To maintain and facilitate the maintenance of peace,
order and good governance within its area of
jurisdictions (proper administration, Laws regulations,
and good governance)
b) To promote social welfare and economic well-being
of all persons within its area of jurisdictions
c) Subject to the national policy and plans of rural and
urban development of its area of jurisdictions
 Functions of local government
Authorities continues.......
B. Specific functions
• From village level to city level – (Tutorial)

Question – Tutorial
• Discuss different levels of local government
administration and their duties
 LOCAL GOV’T TAX
ADMINISTRATION
• Tax administration;
• Components of tax administration;
• Local government of tax administration;
 Local government tax administration

• The term local government tax administration

may be defined as the management of tax and
non tax revenues sources by the respective
local government authority.
• It involves imposing, assessing, collecting
and monitoring & controlling such revenues
from respective persons who are required to
pay such amounts.
 Laws governing L.G.T.A
 The Constitution of the United Republic of
Tanzania 1977 (sec 145 – revenue for L.G.As)
 The Local Government Finances Act No.9 of 1982
 The Finances Act 2004
 The Urban Authority Rating Act No.2 of 1983
 The Local Government Finances Act and the
Local Government (Block Grant) Regulations
 The Local Authority Financial Memorandum 1997,
 Local Authorities by-laws
 Objectives of Local Gov’t Tax
Administration
• To assess, collect and account for local
government revenue.
• To administer the revenue laws fairly,
uniformly, impartially as well as with diligence
and efficiency.
• To facilitate and encourage voluntary
compliance through its areas of jurisdiction.
 Objectives of Local Gov’t Tax
Administration
• To detect and counteract all forms of frauds
(avoidance and evasion).
• To maintain the public confidence in the
integrity of the tax requirements of tax system.
• To advise the government on all matters
relatively to fiscal policy.
• To provide for trade statistics and publications
 SOURCES OF LOCAL
GOVERNMENT REVENUES
• These taxes, fees and other levies may differ
from one local authority to another because of
differences in the economic base of the areas
which affect tax base.
• Sec 6(1,2 and 3), sec 7(1 and 2), sec 8(1, and
2)and sec 9(1,2,3,and 4)of The Local
Government Finance Act 1982 provides the
sources of revenue in each category of local
government authority.
 Local govt revenue sources and other
modes of financing
• Major categories of financing:
a) Own revenue sources;
b) Central Government transfers;
c) Donations; and
d) Borrowing .
 Own revenue sources
1) Local Taxes
i. Property Tax
ii. Hotel and Guest House Levy
iii. Entertainment Tax
iv. Industrial and Service Levy
v. Agricultural cess
vi. Livestock cess
 Own revenue sources.......cont
2) Non Taxes revenues
 Licenses & Permits
 Income From Property
 User Charges and service fees, and
 Other Non-tax Revenues (including fines and
penalties, etc)
 Public-Private Partnership arrangements
• Question: explain the importance of LGAs’
capacity in generating their own revenue
 Central Government transfers
• Shared national taxes and revenue (ref. sect 7-
9)
• Government grants and subsidies/transfers (ref.
sect 12-13)
 Donations and Aids
• Community members contribution for
development projects
• Local and non local Entities & organisation
 Borrowings
1)Short-term borrowing
2)Long-term capital investments
– Commercial banks and/or investment banks
– Municipal bonds (to be issued at the capital
markets)
3)Local inter-fund borrowing

Reference is to be made in section 14-15 of the

LGFA 2019
 Evaluating and administration of
selected local taxes
• Before imposing local taxes there are several
criteria that should appraised by any local
revenue scheme. These are as follows:
– Adequacy and elasticity: tax yield should be
adequate to fund the intended objective
– Equity: fair in terms of treatment
– Economic efficiency: minimize or avoid consumer/
producer choices,
– Administrative, cultural and political feasibility
 1st Selection:
Agricultural cess
i. Identify the crop which attracts produce cess
a) Farms produces; both cash and non-cash crops
b) Forest produces; including charcoal, timber, logs,
Mirunda, Firewood, Fito, etc.
ii. Estimate physical output
iii. Determine the rate per unit
iv. Calculate the amount of cess due
a) Farms produce cess 3% of farm gate price on cash
crops and food crops
b) Forest produce cess 5% of farm gate price
v. Inform the cess payer of their liability
vi. Enforce collection if not paid by due date
(including demand note)
 Example
• The Council agricultural cess was collected by
Mbayuwayu Collection Agency Ltd. These
sales were analyzed as follows:
– Farms Produce:
• Maize 21,000,000/=
• Rice 21,000,000/=
• Other farms products 15,000,000/=
• Animal Produce
• Cows 40,000,000/=
• Goats 20,000,000/=
 Example
• The commission payable to Mbayuwayu
Coolection Agency as per the contract was
2.5% of total collection

Required;
• Calculate the actual revenue from Agricultural
cess by the Council.
 2nd Selection:
Services levy
• For urban authorities this is a very important
source of revenue which imposed on total
turnover of all corporate bodies or any person
conducting business
• Currently the levy is set at 0.3% of the
turnover, net of VAT and Excise duty
 Example
• The ABC Co. ltd is the only entity situated in
the council jurisdiction with the total revenue
of 5,400,000,000/=. The ABC Co. Ltd is the
VAT registered entity and the figure of sales is
VAT inclusive. Other non VAT registered
traders collected the sum of 800,000,000/= in
total as their revenue sales.
• Required;
Determine the service levy collected by the
council
 PROPERTY TAXATION
• Property taxation involves all procedures
necessary in levying, charging and collecting
taxes imposed on the rateable properties.
• Property tax is the tax imposed on the
properties owned by the individuals, entities
and institutions.
• Rateable properties include real estates;
buildings; structures; and any other similar
properties.
 Property taxation continues
In Tanzania,
• The tax is imposed on the buildings, structures
located in Urban areas (Municipals, Cities and
Town); Township areas; and District
areas....(sec 6 of the Urban Authority Ratings
ACT CAP 289);
NB:
• The Local Government Finance Act, CAP 289
and The Urban Authority Rating Act, CAP
290 empower a local authority to levy a rate
based on immovable property situated within
the area of jurisdiction and also set the
procedures to be followed in doing so
 Procedures for Property Tax
Administration
1) Identification of taxable properties
The first step in instituting property tax is to identify
the properties to be taxed.
Normally the tax is imposed on all types of property –
commercial, industrial, institutional and
residential.

2) Valuation
Valuation may be based on any of the following:
 Tax procedures..... Valuation
a) Annual Rental Value
The annual rental value is the potential income
to the owner of the property from renting it
(whether it is actually rented or not).
b) Capital Value
This is the potential market sale price of the
land or the land plus its improvements e.g.
buildings, infrastructure and amenities
developed on the land.
 Tax procedures..... Valuation
c) Site Value
It is the potential market value of land for sale
as if the land is sold itself without considering
any building or structure thereon (when the
property is in unimproved state).
d) Artificial basis
An artificial basis is one that does not rely on
value or cost but specifies a figure per square
meter or per room or some other methods.
 Tax procedures continues.....
3) Assessment
Once valuation of all ratable properties has
been made and the relative value of each
property known and put on record, the next
step is to set a rate/tariff and apply it on the
value determined to calculate the amount due.
The ratable value is arrived at after allowing
statutory or other allowances from the relative
value, if any.
 Tax procedures..... Assessment
• In Tanzania, the property tax rates vary from
the sizes, location of properties and usage
(residential, commercial or cum-residential and
commercial, industrial, farm, government,
charitable organisation, etc).
• In Tanzania, before 2016/17 property rates were
grouped into
– Flat rate for non valued properties
– Percentages of valued properties (ad-valorem rates)
 Tax procedures..... Assessment
• From the financial year 2016/17 the flat rate
was to be implemented as follows;
(a)In the case of City Council, Municipal Council
and Town Council areas:
i. 12,000/= shillings p.a. or (1000/= p.m) for any
ordinary building in a plot;
ii. 60,000/= shillings p.a. (or 5000 p.m.) for each
storey/floor in a storey building;
 Tax procedures..... Assessment
(b) In the case of District Council and Township
areas:
(i) 10,000/= shillings for ordinary building;
(ii) 20,000/= shillings for a storey building.

NB
THE DUE DATE FOR TAX PAYMENT IS ON
OR BEFORE 31ST DECEMEBER, EACH
YEAR
 Tax procedures..... Assessment
• NB:
1. A fraction of a building belonging to one or
several co-owners in accordance with the Unit
Titles Act shall be treated as a separate building
2. “ordinary building” excludes storey building,
mud huts, thatched houses, mud houses and
such other similar houses ordinarily used for
residential purposes.”
 Tax procedures continues.....
4) Billing / Invoicing
• Once the amount of tax to be paid by each
property owner is known, bills are prepared and
delivered to the taxpayer by the most reliable
method.
The bill should indicate the following:
• Name of Taxpayer and Address
• TIN
• Property Identity Number and Location
 Tax procedures..... Billing
• Serial Numbers of the Bill and Date
• Amount Billed
• Due date
• Date after which penalty is due.
 Tax procedures continues.....
5. COLLECTION & PAYMENT
• The Authority should provide payment
procedures to ratepayers by considering
convenience principle of taxation.
• Currently in Tanzania, TRA established
different payment mechanism including
electronic payment system and proposed
financial institutions that might be convenient
to a taxpayer and may opt for payment.
 Tax procedures continues.....
6) Enforcement
It is generally acknowledged that no tax is
admired by the community, although some are
more unpopular than others. For this reason to
maximize tax revenue there must be
enforcement mechanism in place in respect of
amount due from ratepayers beyond the due
dates.
 Tutorials
1) Discuss different enforcement measures to be
employed for tax recovery as stipulated in
revenue laws governing local government tax
administration.
2) Which properties are excluded from property
tax chargeability?
 REVENUE COLLECTION
MECHANISM IN LGAs
• Revenue collection procedures should aim at
maximizing revenue potential from different
revenue source. This can be measured in two
ways:
a) Revenue Realization: amount of revenue
realized should proximity of actual yield to
the true potential of revenue
b) Cost: This is the amount of resources used
in collecting revenue in relation to yield.
 Revenue Collection Performance
• Revenue collection performance is measured
by “collection efficiency”.
• Collection Efficiency is the actual revenue
collected as percentage of potential revenue.
• The true potential revenue is the amount of
revenue that could be collected if all the
revenuepayers were known and if they all paid
their tax obligation.
 Realization of potential revenue
• To achieve maximum revenue collection, the
following should ensured:
– Revenue is collected as assessed.
– No room for fraud or collusion is left
– The revenue collected is duly accounted for by
those who collect it.
– Proper, accurate and up to date tax records are
maintained.
– The system keeps collection costs at the minimum.
 Realization of revenue.......
NB:
• LGAs need to have desirable supervision and
monitoring for maximizing revenue collection
towards the designated revenue target
 USER CHARGES, FEES AND
LICENSES
User charges
• User charges are used where units of service
consumed by an individual can be measured.
• User charges include
– Solid Waste
– Cesspit Emptying
– Health facility user charges
– Clearing of blocked drains
– Livestock dipping
– Meat inspection charges
 User charges include……..
– Abattoir slaughter charges
– Burial charges
– Business premises inspection charges
– Fire services
 Strategy to Enhance Performance on
user charges
• Administratively revenue performance can be
enhanced by:
– Ensuring that all those liable to pay for the service
are known and that they pay.
– Maintaining proper records for different chargeable
services.
– Maintaining up to date revenue data for each source
– Reviewing rates to take into account of increasing
operation and maintenance costs.
Strategy to Enhance Performance
on user charges.........
– Carrying out collection efficiency, cost recovery
and revenue per unit of service analyses
periodically.
– Improving revenue administration capacity
(competent staff, equipment etc.).
– Production of monthly and quarterly revenue
reports.
 OTHER FEES
Fees
• fees are for the services of which consumption
by individuals cannot be measured.
• They include:
– Market Fees,
– Licensing fees
– Others,
 Market Fees
• Market fees include stall rentals and slab dues
and also include dues collected from open
markets “Magulio”.
• Market fees are intended to fund market
services such as water, electricity, and other
public facilities provided at the market places
including infrastructure.
• The fees should ideally reflect the cost of
services provided by a local authority.
 Market fee Collection Methods:
• Collection can be done through
– employees responsible for market dues or
– Appointed agents.
• Effective collection requires:
– Up to date and correct data of available stalls for
each market.
– Number of Magulio and market days
– Information on average collection weekly &
monthly.
 Licensing fee
• A licence is an official document issued by an
authority that gives a permission to own, do, or
use something.
• The licence is usually issued after payment of a
certain amount of money as a fee and/ or taken
a test (in some occasion – eg driving licences).
 Licences fee............
• Local government authorities derive some their
revenues from license fees.
• Below is a list of some of these licenses:
– Business License
– Intoxicating Liquor License
– Taxi, pick up and lorry license
– Street vending and hawking license
– Hunting license
– Forestry products license
 Licences fee......
– Fisheries license
– Dog license
– Livestock license
– E.t.c.
 Strategies to Enhance Performance on
licensing fee and other fees
• In order to improve revenue performance for
fees and licenses, every local government
authority has to take action on the following:
– Improve administrative capacity to assess revenue
base
– Ensure accurate collection and maintenance of up
to date revenue data for each source of revenue (and
in the case of licenses for each group of licenses).
– Review revenue sources and revenue yields often to
see whether it is growing or declining.
Strategies to Enhance Performance
on different fees
– Use comparative data between periods as well as
between other local authorities of the same size.
– Ensure that the system of assessing and collection
of fees minimizes incidents of corruption and
embezzlement of revenues.
– Consider outsourcing revenue collection to private
collectors to increase revenue from existing
sources.
– Ensure existence of enforcement mechanisms to
enforce sanctions.
OUTSOURCING FOR REVENUE
COLLECTION IN LGAs
• Definitions:
– Outsourcing is where an organisation or entity hires
an external firm to conduct/operate certain aspects
of its activities/operations or any other specific task
which was to be done by the company’s staff.
– Outsourcing refers to the practice of an organisation
to appoint and contracting with a third-party
supplier to provide products or services that are
currently handled (or to be handled) in-house by
staff
 Advantages of Outsourcing
1) COST SAVINGS; especially on temporary
operations
2) INCREASED EFFICIENCY AND
PRODUCTIVITY Overall Performance is
expected
3) Gain access to specialized expertise.
 Disadvantages of Outsourcing
• LOSS OF CONTROL - potential for loss of
control over the quality and processes is
expected since outsourcing companies operate
on their own.
• LACK OF SECURITY - Outsourcing involves
the sharing of sensitive information. Since the
other company is an independent body, there’s
always a risk of security
• COMMUNICATION ISSUES
 Tips for Successful Outsourcing
1) Work with reputable firms
– extensive research before signing any contracts and
– make sure the company of choice has plenty of
experience.
2) Trust is critical
– Discuss core competencies with the company being
considered for outsourcing
 TIPS continues...........
3) Establish an outsourcing liaison
– The person in this position will be in charge of
communicating with and monitoring the company
you choose as an outsourcing partner.
– Having someone specifically assigned to this task
will limit communication issues and concerns.
 NB
• When an organisation outsources, their
employees can focus on their strengths and the
goals of the business while depending on
external vendors for specialized assistance in
areas outsourced.
• It allows the company to focus on a more
critical task after appointing another company
to outsource other tasks
 LGA OUTSOURCING IN TZ
• In Tanzania, outsourcing of local government
revenue collection has been under the NPM
and local government reform programmes in
particular, which started in the 1996/97
(Manyanga, 2020).
 Why LGAs outsourcing
1. Corruption:
• Due to insufficient collections within the
authorities based on the assumption that
outsourcing is more efficient and is likely to
reduce corruption - as the main problems which
took different forms - at the collection points
(by penalising a poor revenue collector) and
reduce tax collection costs
 Why outsourcing.........
• However, other challenges resulting into
outsourcing include the following:
2. Weak human resources,
3. Poor record keeping,
4. Lack of well-established financial systems in
place and the where about of the utilization of
the generation revenue from the projects.
5. Budget issues
 Why outsourcing.........
6. lack of reliable database for various sources of
revenues
7. lack of sufficient tax education
8. conflict of interest between staff in LGAs
especially in carrying out the revenue
collection responsibilities.
 Provisions relating to outsourcing
• Outside the LGAs
– Section 31 of the local government finance act 2019
– Section 117 of the Local Government District
Authority Act 1982
– Section 118(2)(dd) of the Local Government District
Authority Act 1982
– Section 131(1) of the Local Government District
Authority Act 1982
– Section 16(3) of the Local Government Urban
Authority (RATING) Act R.E 2019
– Section 53(1) of the Local Government Urban
Authority Act 1982
 Provisions...................
• Within LGAs
– Sections 119; 120(2); of the Local Government
District Authority Act 1982
– Sections 119; 120(2); 133; of the Local
Government District Authority Act 1982
NB
 NOTATION
• LGAs do not conduct feasibility studies in order
to make sure that the outsourcing of revenue
realizes value for money including failure to
carry out revenue potential assessment of how
much the agent should remit to the Council.
• Hence, proper planning before outsourcing is
recommended by considering the proper market
condition, assessment of revenue potential, merits
of outsourcing and development of a risk
management plan.
 ADMINISTRATIVE ISSUES
• FROM CENTRAL GOVERNMENT
• WITHIN LOCAL GOVERNMENT
 Central Govt Control over L.G.As
• All state authority in the United Republic are
exercised and controlled by the Government of
the United Republic of Tanzania and the
Revolutionary Government of Zanzibar.
• Each Central Government has three organs that
have powers over the conduct of public affairs
:
a) The Executive;
b) The Judiciary; and
c) The Legislature.
 Central Govt Control over L.G.As

• Several central government agencies are

involved with the development of policy and
monitoring of local government.
• Their roles range from strategic development
and policy, regulation and monitoring, in
handling complaints about the activities and
operation of local government
 1) Ministry for Regional
Administration and Local Government
Authorities
• The Ministry for Regional Administration and
Local Government is responsible for local
government in mainland Tanzania and currently
sits within the President’s office /Prime Minister's
Office
• The main role of the minister and his department
is to formulate broad national policies and to
monitor local authorities to ensure that these
policies are integrated into locally developed
programmes.
 Ministry for RA& LGAs
continues...
• The department works in collaboration with
sector ministries; also formulate policies
relating to local government in their areas
example education, health, roads, water and
agriculture, etc.
• Sector ministries include:
– Ministry of Education
– Ministry of Health
– Ministry of water, irrigation and sanitation
– Other ministries/departments
 2) Central government appointments

• For administrative purposes, mainland Tanzania

is divided into regions.
– Each region is administered by a commissioner
termed as Regional Commissioner who is appointed
by the central government.
– At district levels there are other commissioners
termed as District Commissioners who is also
appointed by the central government.
– In other lower levels division, ward, and Street &
village levels, there other appointed executive
officers who are the employees of the government
 Central government appointments
• The Central government through its machinery at
District and Regional level respectively, can
intervene in the decision making process,
including
– The enactment process of the by-laws which ends up
to the minister responsible for LGAs who has to sign
and publish them in the government official gazette
– It should also be noted that central government
appointees (the RCs DCs and Directors) play an
incredibly large role in local administration
 Central government appointments
• The autonomy of these LGAs has been
restricted by the direct control of the central
government over decision-making process in
the LGAs: the LGAs are,
– in many cases, not consulted before policy
measures are decided by the central government
– even when there is a little involvement still their
recommendations are not directly included
 3) National Audit Office
• Section 28 of the Public Audit Act No. 11 of
2008, authorizes the Controller and Auditor
General to carry- out Performance Audit for the
purposes of establishing the economy, efficiency
and effectiveness of any expenditure or use of
resources in
– Ministries,
– Departments and Agencies (MDAs),
– Local Government Authorities (LGAs),
– Public Authorities and other Bodies
 NAO continues............
• The roles of CAG in local government revenue
and expenditure
• CAG reports are results of wide and at times in-
depth audit of public funds, systems, laws,
regulations and practices related to public
funds. The audits aim at finding out the extent
to which laid down laws, regulations and
procedures on public financial management are
followed.
 NAO continues..............
• Regulation 88 of the Public Audit Regulations,
2009, requires CAG to submit Annual General
Report on the Audit of Local Government
Authorities annually to the President of the
United Republic of Tanzania on or before 31st
March.
• The CAG is required to conduct both
compliance audit, financial audit, and special
audit in respect of local government authorities
operations.
 NAO continues..............
• Compliance audit is based on
– parliamentary decisions,
– laws,
– legislative acts, and
– Government policies and Directives
• The financial audit should communicates the
CAG’s opinion stating whether the respective
LGAs’ financial statements were prepared in
accordance of:
 NAO continues........................
– Accrual Basis
– International Public Sector Accounting Standards
(IPSASs) and
– other governing legislations.
• special and comprehensive contract audits
conducted on
– assessing the status of implementation of the prior
years’ audit recommendations and
– Directives of the Local Authorities Accounts
Committee (LAAC) issued from time to time
– President’s directives
 NAO continues.................
• The CAG recommendations will add value to
the prevailing Government interventions
towards better stewardship of public resources
and provision of improved quality of services
particularly to the local communities.
 4) HUMAN RIGHTS
COMMISSION
• Human rights are the basic rights and freedom
that belong to all people in the world, from
birth to death based on shared values like
dignity, equality, fairness, respect, and
independence which are protected and defined
by the laws of various countries.
 Human Rights ......................
• Some human rights are more visible than others
as It’s much easier for people to relate to rights
like the right to vote, or the right to a fair trial in
a court of law.
• These are often related to the roles of
government and the democratic process.
 Human Rights .............
• But some human rights are more fundamental,
and often unknown to the public (e.g. the right
to health is one of the most important, yet
overlooked. Without health care, people can’t
fulfil their basic needs, like getting a good
night’s sleep, or not getting sick. They also
can’t contribute to their communities, and may
even die from preventable diseases).
 Importance of Human Right
• You can think of human rights as the right to a
basic, adequate standard of living, as protected
by human rights law.
• Human rights are important because no one
should be abused or discriminated against, and
because everyone should have the chance to
develop their talents. Unfortunately, many
people around the world don’t have these basic
rights and freedoms.
 Basic Human Rights
• These rights ensure that everyone is able to live
their lives and express their thoughts and ideas
without any external constraints irrespective of
their social or financial standing. They include
the following
– To have marriage and family
– The right to claim your own belongings
– Freedom of thought
 Basic Human Rights...........
– Freedom of expression
– The right to public assembly
– The right to democracy
– To have a social security
– Worker’s right
– Right to education
 Human Rights in Tanzania
• Since the union between Tanganyika and
Zanzibar in 1964, the United Republic of
Tanzania has undertaken significant initiatives
in the area of protection and promotion of
human rights by ratifying and domesticating
various international and regional human rights
instruments, repealing unconstitutional laws,
etc.
 HR in Tanzania .......
• The Commission for Human Rights and Good
Governance (CHRAGG) is an independent
government department, established as the
national focal point for the promotion and
protection of human rights in Tanzania.
• The CHRAGG covers a wide range of
functions with the core functions of promoting
and protecting human right.
Roles of Human Right Commission
• The core functions and roles of commissioner
for human rights are to promote, protect and
preserve human rights and principles of good
governance in the country.
• The Commission shall carry out the following
among other functions
– to investigate the conduct of any person to whom
or any institution to which the provisions of this
section apply in the ordinary course of the exercise
of the functions of his office or discharge of
functions in excess of authority
Roles of HR Commission ...........

– to investigate or inquire into complaints

concerning practices or actions by persons holding
office in the service of the government, public
authorities or other public bodies, including private
institutions and private individuals where those
complaints allege abuse of power, injustice, unfair
treatment of any person, whether complainant or
not, in the exercise of their official duties;
Roles of HR Commission ...........
– to provide advice to the government and to other
public organs and private sector institutions on
specific issues relating to human rights and
administrative justice
 HR Commission roles in L.G.As
• The Commissioner advises the government,
other public organs and private entities on
specific issues relating to human rights and
principles of administrative justice
• The duty to respect means that local officials
must not violate human rights through their
own actions. It requires local government to
refrain from interfering with the enjoyment of
the rights and freedoms of all persons within its
jurisdiction.
NB:
• Through ratification of international human
rights treaties, Governments undertake to put
into place domestic measures and legislation
compatible with their treaty obligations and
duties. The domestic legal system, therefore,
provides the principal legal protection of
human rights guaranteed under international
law.
 Tutorial questions
1) Discuss different powers, functions and other
responsibilities of central government in
controlling and management of local
government authorities
2) Identify other central government agencies
and organisation responsible for local
government issues
 LOCAL GOVERNMENT
ADMINISTRATIVE ISSUES
• The council is the main representative organ of
local government.
• The main areas of expenditure for local
government include
– Elementary and secondary education,
– utilities,
– public safety,
– health,
– roads,
• street lamps,
• signs & traffic lights (if it is Non-Tanroad property);
and
• General administration.
 Factors affecting revenue
collections in LGAs in Tanzania
• Administrative inefficiency, including
 collection process,
 internal control & monitoring system (however,
currently EPICOR is in use),
 weaknesses in human resources,
 The role of ICT and other modernized ways of
collection and other tools;
• Political interference;
• Corruptions;
• lack of general sensitisation;
 Factors affecting LGAs revenue...
• Poor plans and budgeting;
• tax evasion,
• absence of enough relevant information about
taxes,
• Lack of auditing of tax revenue returns and
drafts and
• lack of enough tax education
• Government policies
Ways to improve revenue collection
in LGAs
1) Improved Revenue Collection Procedures;
-Modernized methods of local government
revenue mobilization require convenient ways
of collections including:
 indexing of property values,
 e-bill delivery,
 the introduction of e-payment gateways (mobile
money modes of payment), etc.
 Improving LGA collections.....
2) Improved Enforcement:
 Local Councils must strictly enforce the rules
regarding payment of levies, fees, and other
revenue sources.
 An improvement in the enforcement of revenue
collection rules and regulations will serve as a
deterrent to those who wilfully evade local
government taxes.
 Improving LGA collections.....
3) Public Education:
– LGAs have to explain to the public why it is
necessary to pay their taxes and other local
government levies.
– When people see themselves as part of local
government and beneficiaries of development
projects, they will be more than willing to pay their
levies promptly
 Improving LGA collections.....
4) Improved Accountability
– LGAs officials must hold regular meetings with the
public and explain to them how they spend their tax
monies.
– This will build transparency and trust between the
two parties, and hence, persons who are eligible to
pay levies will find the motivation to do so
 Improving LGA collections.....
5) Increased Central Government Grants
6) Recruitment of Qualified Personnel
– It is only those who shoulder the responsibility for
bringing more funds to local government coffers
know what they are about that the revenue targets
can be easily achieved
7) In-Service Training
8) Reduction in Corruption:
 The authorities must sanction corrupt revenue
collectors as speedily as possible.
 Improving LGA collections.....
9) Establishment of Businesses ventures
 Local authorities should engage in profitable
business ventures to augment the funds coming
from taxes, levies, fines, licenses, and royalties.
 They should explore opportunities in such income-
generating activities as investing in the hospitality
industry, transportation, agriculture, etc.
 Improving LGA collections.....
10) Effective Financial Control:
 The central government must be proactive in
controlling the finances of local governments as
provided for in the law. It is an open secret that
much of the revenue collected find their way into
private pockets.
 For that matter, there should be constant internal
and external auditing of the accounts of the local
governments. The purpose is to prevent
misappropriation and embezzlement of local
government funds
 Improving LGA collections.....
11) Improved Service Conditions:
Revenue collectors should be given adequate
salaries and other incentives. Not only will
this motivate them to improve upon their
revenue collection, but also, it will discourage
them from indulging in corrupt practices that
go to undermine the revenue base of the local
governments.
 Tutorial questions
• Discuss different powers related with local
government authorities in executing their
functions including administrative powers,
legislative powers, executive powers, and
others.