Own Source Revenue Generation

Tax revenues are vital for local governments to provide essential services such as water, waste management, and public infrastructure. Yet, many local authorities collect only a fraction of their potential. Drawing on experience in over 15 countries across Africa, the Middle East and Southeast Asia, VNG International has demonstrated that a holistic approach can help local governments to build resilient, sustainable revenue systems that drive better services and greater accountability.

VNG International’s integrated systems approach

We support local governments in increasing their own-source revenues by improving tax administration and collection processes. Our integrated approach consists of six elements:

  1. Leadership and accountability
  2. Citizen communication and involvement
  3. Business process (re)design
  4. IT support
  5. Staff training
  6. Policy and regulation (re)design

These elements are designed to work together to build sustainable and effective local tax systems.

Our support includes:

  • Property registration using geo-location via mobile devices.
  • Modern revenue procedures, including property value indexing, zonal valuations, e-billing, and e-payments.
  • User-friendly billing and collection software that reduces fraud risks and improves revenue management.
  • Improved citizen engagement, through mass communication and interpersonal outreach.
  • Funding cycle organisation, linking revenue generation to transparent and effective spending decisions.

Three pillars of revenue support

Our approach is embedded in three areas, that require in-depth analysis:

MandateSocial contractTechnical capacities
Legal support for improving legal frameworkMass communication campaigns for tax awarenessRevenue process re-design
Administrative support for improving timely and accurate fiscal transfersStakeholder engagement for priority settingReference processes, operational guides and manuals, and training materials
Advocacy support for improving position of local governmentsLeadership training on citizen interactionDigital tooling for data collection, bill distribution, payment collection
Tailoring revenue software

Demand-driven and locally anchored

All VNG International support is demand-driven and based on thorough contextual analysis. We assist donors and partner countries during project design with tailored scoping and diagnostics to ensure interventions are adapted to local challenge

As both a knowledge hub and implementation partner, VNG International works alongside local authorities, who remain responsible for strategic decisions and project monitoring. Our international experts collaborate with local professionals to embed knowledge and secure long-term results. Each project includes a form of continuous handover, ideally to a government-appointed counterpart, to ensure sustainable ownership of project outcomes.

Take a look at our factsheet (pdf, 1 MB) to find out more about VNG International’s approach or watch our webinars.