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 revenue. Strengthening domestic resource mobilisation through improved local tax collection is therefore crucial for enhancing both service delivery and public 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:
- Leadership and accountability
- Citizen communication and involvement
- Business process (re)design
- IT support
- Staff training
- 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:
| Mandate | Social contract | Technical capacities |
|---|---|---|
| Legal support for improving legal framework | Mass communication campaigns for tax awareness | Revenue process re-design |
| Administrative support for improving timely and accurate fiscal transfers | Stakeholder engagement for priority setting | Reference processes, operational guides and manuals, and training materials |
| Advocacy support for improving position of local governments | Leadership training on citizen interaction | Digital 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.
If you want to learn more about our approach on supporting own source revenue at local government level, have a look at our webinars.