When I was
here before we were asked by the Mayor of a large provincial capital to help
him improve the rate of collection of the municipal taxes and charges. He knew
that one of the sources of his unpopularity – and that of the national
government as well – was the prevalence of tax collectors legal and illegal who
seem to appear from nowhere and demand payments that appear completely
arbitrary. There were 40 different taxes, payable daily, monthly or annually.
The Mayor was open to a complete overhaul of the system: one that would work
for the city as well as the residents.
We loved
the idea, and enthusiastically designed a census of all businesses that would
allow us to calculate what each should pay and when, and have a proper record
of the location of each business. What’s more we would give each business
something they had never had: a street address. Each one would also – and this
was the biggest achievement – receive a statement showing how much they should
pay and when.
We helped
the Mayor to develop a user-friendly revenue collection office, and rationalize
the staffing, while cutting the number of tax collectors from about 40 to 10.
The results
were truly impressive. Tax payers loved it. They were much more willing to pay.
Corruption plummeted as the tax collectors had clear targets and had to account
for their receipts. Total receipts more than doubled, while costs had been
dramatically reduced. USAID, for whom we were working, were impressed and insisted
that in the next project (the one that were are working on at present) be
repeated in 10 – 20 more towns.
For the
Mayor this was an opportunity for self advertisement, and he wasted no time in
bragging about it. He boasted about his achievements in international
conferences and soon he was on the steering committee of the association of
Francophone Mayors. This took him to meetings all over the world and he began
to see himself as a truly international celebrity.
With this
achievement and the warmth of international acclamation behind him, he decided
to reassess his situation. Although he had boasted about the successes in
collection, the system had removed an important source of income. Before this
project he had been receiving a percentage of all receipts. He was under severe
pressure to give jobs to his hungry extended family. Luckily, the interfering
USAID project had ended, so he was no longer under scrutiny. His mind was made
up.
He scrapped the
whole system, hired another 20 tax collectors who were answerable to him and
settled back into the old ways. He once more has a substantial income and can look his extended family in the eye.After all he is
appointed by the President. When I was
here before we were asked by the Mayor of a large provincial capital to help
him improve the rate of collection of the municipal taxes and charges. He knew
that one of the sources of his unpopularity – and that of the national
government as well – was the prevalence of tax collectors legal and illegal who
seem to appear from nowhere and demand payments that appear completely
arbitrary. There were 40 different taxes, payable daily, monthly or annually.
The Mayor was open to a complete overhaul of the system: one that would work
for the city as well as the residents.
We loved
the idea, and enthusiastically designed a census of all businesses that would
allow us to calculate what each should pay and when, and have a proper record
of the location of each business. What’s more we would give each business
something they had never had: a street address. Each one would also – and this
was the biggest achievement – receive a statement showing how much they should
pay and when.
We helped
the Mayor to develop a user-friendly revenue collection office, and rationalize
the staffing, while cutting the number of tax collectors from about 40 to 10.
The results
were truly impressive. Tax payers loved it. They were much more willing to pay.
Corruption plummeted as the tax collectors had clear targets and had to account
for their receipts. Total receipts more than doubled, while costs had been
dramatically reduced. USAID, for whom we were working, were impressed and insisted
that in the next project (the one that were are working on at present) be
repeated in 10 – 20 more towns.
For the
Mayor this was an opportunity for self advertisement, and he wasted no time in
bragging about it. He boasted about his achievements in international
conferences and soon he was on the steering committee of the association of
Francophone Mayors. This took him to meetings all over the world and he began
to see himself as a truly international celebrity.
With this
achievement and the warmth of international acclamation behind him, he decided
to reassess his situation. Although he had boasted about the successes in
collection, the system had removed an important source of income. Before this
project he had been receiving a percentage of all receipts. He was under severe
pressure to give jobs to his hungry extended family. Luckily, the interfering
USAID project had ended, so he was no longer under scrutiny. His mind was made
up.
So he scrapped the
whole system, hired another 20 tax collectors who were answerable to him, and
settled back into his old ways. His income secure once more, he could get that Mercedes he had been thirsting for. And although civil society might shout about his
corruption and obvious abuse of power he doesn’t mind. After all he is
appointed by the President.
What a
shame!