World Bank2012-03-192012-03-192011-04-01https://hdl.handle.net/10986/2768The objective of this study on the Development of 13 Mozambican Municipalities in Central and Northern Mozambique is to assess the impact that the 2008 reforms on own-source revenues is having on the municipal revenue potential. To do so, it calculates the revenue potential of four fiscal and three non-fiscal revenue sources. The analysis shows that there is substantial untapped revenue potential at the municipal level, with estimates indicating that -in the case of the most buoyant local revenue sources- municipalities are only collecting about half of the revenue potential. In the worst cases, municipalities are collecting far less than 10 percent of the total revenue potential of a local revenue source. The fact that a revenue gaps exists is not only an indication of weak municipal performance. Municipalities have relatively recently been created and it takes time, capacity, and effort, to consolidate their revenue functions. Tax administration is overall still weak and a series of vacuums exist on the municipal fiscal legislation. The analysis reveals that the current revenue instruments at the disposal of municipalities are generally appropriate municipal revenue instruments, so that efforts at the national and municipal levels should be made to build the capacity of the local tax administration to collect these revenues. The report provides specific suggestions on ways to strengthen the revenue collection for the main municipal revenue instruments. However, in addition to increasing municipal tax effort, the expenditure needs of municipalities are so demanding that additional intergovernmental transfers and tax sharing arrangements should also be considered as a building block of municipal finances in Mozambique. The results of this study aim to become part of the ongoing dialogue with the municipalities and national tax authorities to expand the understanding of municipal revenues in Mozambique on the basis of more sound empirical evidence. The scope of this analysis was limited to a sample of six municipalities. In-depth case studies were prepared for each of these municipalities, upon which the current Summary Report is based. The six case municipalities include: Beira, Cuamba, Marromeu, Nacala, Ribaue, and Vilankulo. To bring the Summary Report and the six municipal cases together in the most effective way, the current report follows the same structure as each of the municipal cases. The diagnosis of the current situation is presented in Section 2, followed by a discussion on the estimation of municipal revenue potential in Section 3. Proposals and recommendations regarding the strengthening of municipal revenue collection are presented in Section 4.CC BY 3.0 IGOACCOUNTINGADMINISTRATIVE COSTSASSET MANAGEMENTAUCTIONAUTONOMYBANK ACCOUNTBANK ACCOUNTSBASIC EDUCATIONBETTERMENT LEVIESCADASTRECADASTRESCAPITAL EXPENDITURESCAPITAL INVESTMENTCENTRAL AUTHORITIESCENTRAL GOVERNMENTCENTRAL GOVERNMENT REVENUESCENTRAL GOVERNMENTSCITY COUNCILCOMMERCIAL BANKCOMPARATIVE ANALYSISCOMPARATIVE ASSESSMENTCOMPARATIVE PERSPECTIVECOMPARATIVE STATISTICSCOMPENSATION FUNDCOMPETITIVE BIDDINGCOMPLIANCE COSTSCONSUMPTION TAXESDECONCENTRATIONDEVELOPING COUNTRIESDEVOLUTIONDISTRICTDISTRICT ADMINISTRATIONDISTRICT-LEVELDOUBLE TAXDOUBLE TAXATIONECONOMIC DEVELOPMENTECONOMIC GROWTHECONOMIC TRANSACTIONSEXCHANGE RATEEXPENDITUREEXPENDITURE ASSIGNMENTEXPENDITURE DECISIONSEXPENDITURE NEEDSEXPENDITURE PROGRAMSFINANCESFINANCIAL INSTITUTIONFINANCIAL RESOURCESFISCAL AUTONOMYFISCAL DECENTRALIZATIONFISCAL FRAMEWORKFISCAL LEGISLATIONFISCAL SPACEGARBAGE COLLECTIONGOVERNMENT REVENUEHEAD TAXESHEALTH SERVICESHOUSINGIMMOVABLE PROPERTYINCOMEINCOME TAXESINFLATIONINFRASTRUCTURE DEVELOPMENTINSTITUTIONAL CAPACITYINSTRUMENTINTERGOVERNMENTAL FISCAL TRANSFERSINTERGOVERNMENTAL TRANSFERINTERGOVERNMENTAL TRANSFERSINVESTINGINVESTMENT FUNDISSUANCELAND SPECULATIONLAND USELEGISLATIVE FRAMEWORKLEVYLICENSESLOCAL BUSINESSLOCAL EXPENDITURELOCAL EXPENDITURESLOCAL FEESLOCAL GOVERNMENTLOCAL GOVERNMENT FUNCTIONSLOCAL GOVERNMENT REVENUESLOCAL GOVERNMENTSLOCAL INFRASTRUCTURELOCAL LEVELLOCAL OFFICIALSLOCAL PUBLIC SERVICESLOCAL REVENUELOCAL REVENUE SOURCESLOCAL SPENDINGLOCAL TAXESMARKET PRICEMARKET VALUEMARKET VALUESMATCHING GRANTSMAYORSMINISTRY OF FINANCEMORTGAGEMUNICIPALMUNICIPAL BUILDINGSMUNICIPAL COUNCILSMUNICIPAL DEVELOPMENTMUNICIPAL EXPENDITURESMUNICIPAL FINANCEMUNICIPAL GOVERNMENTSMUNICIPAL INFRASTRUCTUREMUNICIPAL LAWMUNICIPAL LEVELMUNICIPAL OFFICIALSMUNICIPAL PERFORMANCEMUNICIPAL REVENUEMUNICIPAL SERVICESMUNICIPAL TAXATIONMUNICIPAL TAXESMUNICIPALITIESMUNICIPALITYNATURAL RESOURCESNET REVENUENOTARYOPERATING EXPENSESOWN SOURCE REVENUEPOLICY DECISIONSPOLICY MAKERSPOLICY RECOMMENDATIONSPOLITICAL COMPETITIONPOLITICAL ECONOMYPOLITICAL LEADERSPROPERTY TAXESPROPERTY TRANSFER TAXESPROPERTY TRANSFERSPROVINCEPROVINCIAL LEVELPROVISIONSPUBLICPUBLIC ENTITIESPUBLIC EXPENDITURESPUBLIC FINANCEPUBLIC FUNDSPUBLIC MARKETSPUBLIC REVENUEPUBLIC REVENUESPUBLIC SECTORPUBLIC SERVICEPUBLIC SERVICE DELIVERYRECURRENT EXPENDITURESREGISTRATION SYSTEMREVENUE ASSIGNMENTSREVENUE BASEREVENUE CAPACITYREVENUE CATEGORYREVENUE COLLECTIONREVENUE COLLECTIONSREVENUE ENHANCEMENTREVENUE ESTIMATESREVENUE GAPSREVENUE NEEDSREVENUE PATTERNSREVENUE PERFORMANCEREVENUE POLICYREVENUE SHARINGREVENUE SOURCEREVENUE SOURCESREVENUE STREAMSREVENUE STRUCTUREREVENUE YIELDROADSSMALL MUNICIPALITIESSOCIAL SERVICESSOCIAL WELFARESOLID WASTE MANAGEMENTSUBNATIONALTAXTAX ADMINISTRATIONTAX ADMINISTRATION SYSTEMTAX AUTHORITIESTAX AUTHORITYTAX BASETAX BASESTAX BURDENTAX COLLECTIONTAX COLLECTIONSTAX COLLECTORSTAX COMPETITIONTAX COSTTAX EFFORTTAX EVASIONTAX EXEMPTIONTAX EXEMPTIONSTAX INSTRUMENTSTAX LIABILITYTAX ON BUSINESSTAX PAYERSTAX PAYMENTTAX POLICYTAX RATETAX RATESTAX REVENUETAX REVENUESTAX SHARINGTAX SHARING ARRANGEMENTSTAXATIONTAXPAYER COMPLIANCETAXPAYERSTOTAL NATIONAL BUDGETTOWNSTRANSACTIONTRANSPORTTURNOVERURBAN AREASURBAN SERVICESURBANIZATIONUSER CHARGESVALUATIONVALUATION TECHNIQUESVALUATIONSVEHICLE TAXESWorld Bank10.1596/2768