Tax revenues are essential for local governments to provide basic services like water and waste management and to build a public infrastructure. However, many local governments collect only a fraction of their potential revenue. Strengthening domestic resource mobilisation by enhancing cities’ capacity to collect local taxes is crucial for improving service delivery and accountability. VNG International has developed an integrated approach to bolster local tax administrations and improve revenue collection. This includes modules on leadership and accountability, citizen communication and involvement, business process redesign, IT support, staff training, and policy and regulation redesign. Key tools include property registration via geo-location using mobile devices, modern revenue collection procedures such as property value indexing and e-billing, as well as user-friendly billing and collection software to enhance revenue management, combat corruption and reduce fraud, and facilitate better communication with citizens.
VNG International has developed a systems approach that supports local governments in generating better funding for their public services. The VNG International approach is focused on improving the own source revenue of local governments by supporting the local tax base and revenue collection process. An important local revenue is the property tax. Our integrated approach comprises 6 elements; (i) Leadership and accountability, (ii) Citizens communication and involvement, (iii) Business process (re)design, (iv) IT support, (v) Training of staff and (vi) Policy & regulation (re)design. Important results are the development of shared joined strategy on national and local levels to improve both revenue collection and the delivery of basic services; improved revenue collection procedures including modernizations such as indexing of property values, zonal valuations, e-bill delivery, e-payments and improved revenue collection; easy to use, easy to implement, billing and collection software to facilitate effective revenue management and decrease the risks of leakages and fraud; improved mass- and inter-personal communicationwith citizens; organization of sustainable and spending funding cycle in which one can determine how these new revenues will be spent.
Our approach is embedded in three areas, that require in-depth analysis:
- Mandate and legal framework of the local government
- Social contract between local governments and their citizens
- Technical capacities of local governments
The three areas of analysis can be used for the improvement of the local revenue process, with tailor made support
The support of VNG International in local revenue mobilization is always demand driven and based on the local context. VNG International can advise donors and partner countries in the phase of project design with scoping and analysis of the current situation, to come to a tailor made process that is fit for the existing challenges.
VNG International functions as a knowledge hub and project implementation partner, whereas local authorities are always the decision maker for strategic decisions and responsible partner for the monitoring and assessment of the project progress and results. Our team of international experts works closely together with local expertise to ensure the project knowledge is locally rooted and therefore optimally sustainable. The projects carry out a form of continuous handover, preferably to a dedicated local counterpart that assigned by the government. This way, the projects aim to assure a sustainable ownership over the project deliverables at the side of the project counterparts. Please contact us for more information on our services and products, and to start up collaboration,