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Why pay? : motivators for payments of local market dues in Rwanda and Uganda

Document type: report
Download file(s): 115690 (299 KB)
Abstract: Market dues are important for local governments because they are one of the few revenue sources under their control. A viable local revenue base is central to the development and sustenance of a strong decentralized local governments system. Tax evasion as reflected in persistent resistance by the public to pay is an important part of the problem of raising local government revenues. The research was conducted in selected locations in one province of Rwanda (Kigali Ngali Province) and three sub-counties of Arua district in Uganda. Understanding what motivates payment is therefore crucial. In Rwanda, application of a uniform rate regardless of quantity of goods sold was considered unfair because it did not take into account the proportion of their earnings. In Uganda, absence of a standardized criterion of fixing the rates payable for different types and quantities of goods de-motivates payment. In Uganda, privatization of collection demotivates payment while in Rwanda, locally recruited collectors motivate. In both countries failure of local governments to deliver quality services de-motivates.
Authors: Magala, C. , Rubagumya, A.
Series Title: SNV publications
Country: Rwanda , Tanzania, United Republic of
Category: Research
Serial number: H0702-05
Keywords: decentralization , finance
Language: eng
Organization: SNV - Netherlands Development Organisation
PAGE: 20
Place: The Hague
Publisher: SNV Netherlands Development Organisation
Year: 2007
Region: Africa South of Sahara , East Africa
Right: © 2007 SNV
Subject: Social and Political Change
Title: Why pay? : motivators for payments of local market dues in Rwanda and Uganda