Local Revenue Mobilization Mechanisms: Evidence from the Abura-Asebu-Kwamankese District in Ghana

Abstract

This paper examined the local revenue mobilization mechanisms in the Abura-Asebu-Kwamankese District in Ghana. A total of 214 respondents made up of 20 officials of the Assembly and 194 tax payers were involved in the study. The study demonstrated that despite the availability of other sources of local revenue, the Assembly was yet to take advantage of them. The strength of the Assembly’s local revenue collection measures included revenue collectors’ inclusion in tax decisions, house-to-house collection, and database. However, the weaknesses included poor taxpayer participation in tax decisions, inadequate personnel for revenue mobilization and poor cash management systems and accountability mechanisms at the Assembly. Some of the challenges the Assembly faced in improving local revenue generation were unwillingness on the part of the taxpayers to meet tax obligation, low pace of development and political considerations. It is recommended that the Assembly should put in place strong monitoring and supervisory mechanisms to check the revenue collectors, sanctions defaulting collectors, and also create room for private participation in local revenue collection.

Keywords: Decentralization, revenue mobilization, subsidiarity principle, fiscal decentralization