New Publication: How Property Tax Would Benefit Africa

Nara Monkam and Mick Moore examine a neglected income source  View this email in your browser <![if !vml]><![endif]> The future of African national & municipal governments will depend on institutions & tax policy that are equitable, improve local service delivery & encourage compliance through establishing a social contract between taxpayers & the state. Tweet Forward Share Share +1 How Property Tax Would Benefit Africa While the potential contribution that better domestic resource mobilisation could make to national finances has received greater attention since the 2008 global financial crisis, international donors often fail to recall the central role that bargaining over taxation has played in building effective, accountable and responsive states across the developed world. In African states, where the reach of national government beyond capital cities is often limited, reinforcing local revenue generation and collection would enhance state-building and ensure that the potential benefits of decentralisation policies are realised. Property tax has been posited as the ideal source of income for municipal governments, given the association between taxes raised locally and the delivery of municipal services and infrastructure. Yet this type of revenue has been neglected in favour of consumption taxes, which as a percentage levy on transactions are less visible than the annual payment of a property tax. If local authorities were to simplify the assessment of rates, make taxpayers aware of the benefits of compliance and address political resistance from wealthy property owners, a tax on land and buildings could underpin local political and economic development.  Click here to read Nara Monkam and Mick Moore's Counterpoint on property tax, a source of revenue with substantial developmental benefits. Copyright © 2015 Africa Research Institute, All rights reserved. Our mailing address is: 55 Tufton St, London, SW1P 3QL