An Assessment of Revenue Collection Strategy in the Reformed Local Government; Case Study of Lusaka City Council.
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Date
2024
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University of Lusaka
Abstract
A reliable source of income for local governments is essential for fiscal decentralization to work. Even though the federal government has made several extensive changes to taxes in the last decade, the revenue systems utilized by sub-Saharan African states have remained mostly unchanged. Local governments in Zambia get the majority of their funding from taxes levied within their own jurisdictions. Most local governments are unable to provide the basic services needed by their constituents because they fail to make the most efficient use of the funds at their disposal. The expectation was that Lusaka City Council, as the capital of Zambia, would demonstrate how local authorities might effectively utilize their resources. However, the actual situation is completely at odds with this expectation. A lack of political will, noncompliance, or contradictory laws are only a few of the many possible causes of the inability to obtain these monies. The major objective of this research was to assess the revenue collection strategy of the Lusaka City Council within the framework of the reforms implemented by the local government. Qualitative and quantitative approaches were also used in the research. One hundred participants were chosen for the research. A total of 92 out of 100 respondents were able to complete and submit their surveys. LCC has tried a number of different approaches in an effort to increase money coming in. Nevertheless, the primary takeaway from the interviews was that the LCC mostly collected money using online tools and bank transfers. A large percentage of the participants (73.3%) did not have a bachelor's degree or above, suggesting that educational attainment could be a barrier for representatives at the local level when seeking private funding. The majority of respondents think that management should use outside help for revenue collection. The interviewers continued by saying that LCC has programs to increase revenue collection, even though it is well below target. Responses from those who have dealt with LCC's current stringent measures to optimize revenue collection have included threats of closure, revocation, fines, and warnings. The study proved that all research objectives were met, and it showed that every aim and subject was investigated extensively.