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Chamwino and Chemba Districts) LOCAL INVESTMENT CLIMATE (LIC) REVENUE STUDIES FOR TWO LOCAL GOVERNMENT AUTHORITIES (CHAMWINO AND CHEMBA DISTRICTS) FINAL REPORT Dr. Victor George, Dr. Alex Kira, Mr. Elia John and Mr. Sunga Mabeja 11/08/2016 Table of Contents Table of Contents ........................................................................................................................................ i List of Tables .............................................................................................................................................. iii List of Figures ............................................................................................................................................ iii Acronyms .................................................................................................................................................... iv 1.0 Introduction ................................................................................................................................ 6 1.1 Background to the Study ........................................................................................................... 6 1.2 Objective of the Study ................................................................................................................ 6 2.0 The Study Approach and Methodology ............................................................................ 8 2.1 Sampling Frame ......................................................................................................................... 8 2.2 Data Collection Methods ........................................................................................................... 9 3.0 LGA in Tanzania ...................................................................................................................... 10 3.1 An Overview of LGAs in Tanzania ......................................................................................... 10 3.2 LGAs Revenues in Tanzania ................................................................................................... 11 3.3 Laws/Acts guiding LGAs Revenue Collection ...................................................................... 12 4.0 Socio-Economic Profile of Chamwino and Kongwa .................................................. 13 4.1 Socio-Economic Profile of Chamwino District ..................................................................... 13 4.2 Socio-Economic Profile of Chemba District ......................................................................... 14 5.0 Study Findings .......................................................................................................................... 14 5.1 Revenue Collection Structure and Process ........................................................................... 14 5.2 Level of dependency of LGA’s to the central government and its effects to the LGA Plans 19 5.3 Revenue Collection Trend ........................................................................................................... 19 5.4 Sources of Revenue ..................................................................................................................... 21 5.5 Rates/Charges for Main Sources of Revenue at Chamwino and Chemba District Councils ....... 27 5.6 Ability to Meet Budget Estimates ............................................................................................... 29 5.7 Level of Dependency of Specific LGA’s to the Central Government and Its Effects to the LGA Plans 30 5.8 Strength and Weakness of Existing By-Laws Used for Revenue Collection .................... 32 5.9 Description of Qualities of Revenue Collection Staff .......................................................... 36 5.10 Challenges Facing Private Sector on Revenue Collection Process ................................ 37 i 5.11 Revenue Collection Systems ................................................................................................... 39 5.12 Electronic Collection System .............................................................................................. 39 6.0 Study Recommendations ..................................................................................................... 42 6.1 Recommendations on the Possible New Sources of Revenue for the LGA ...................... 42 6.2 Recommendations on the possible electronic systems to be used to improve revenue collection for the LGA’s ....................................................................................................................... 43 6.3 Recommendation on the feasible rates of taxes and levies ................................ 44 6.4 Recommendations on Feasible Ways Introducing By-Laws Responsible for Taxes and Levies with Private Sector Participation of Private Sector Engagement ...................................... 45 6.5 Recommendations for Improvement of the Revenue Collection Processes and Rates Setting .................................................................................................................................................... 46 6.6 Recommendation on Strategies for each LGA on how to Increase LGA Revenue in a More Sustainable Manner ................................................................................................................... 46 7.0 Appendices ................................................................................................................................. 48 ii List of Tables Table 1: Sampling Frame ............................................................................................................................... 8 Table 2: Revenue Collection Trend for Chamwino District ......................................................................... 20 Table 3: Revenue Collection Trend for Chemba District ............................................................................. 21 Table 4: Main Source of Revenue for Chamwino District ........................................................................... 22 Table 5: Sources of Revenue for Chemba District Council .......................................................................... 24 Table 6: Main Source of Revenue for Chemba District Council .................................................................. 26 Table 7: Rates and Charges for Main Source of Revenue for Chamwino and Chemba District Councils ... 28 Table 8: Own Source Budget Estimates against Actual Collected for Chamwino District Council (TZS in Millions) ...................................................................................................................................................... 29 Table 9: Own Source Budget Estimate against Actual Collected for Chemba District Council ................... 30 Table 10: Budget Dependency to Central Government for Chamwino District Council............................. 31 Table 11: Budget Dependency to Central Government by Chemba District Council ................................. 31 Table 12: Percentage Actual Central Government Transfer to Chamwino District Council Error! Bookmark not defined. Table 13: Percentage Actual Central Government Transfers to Chemba District Council ...... Error! Bookmark not defined. Table 14: By-Laws that needs review ............................................................ Error! Bookmark not defined. Table 15: LGA Staff Qualifications at Chamwino District ............................................................................ 36 Table 16: Revenue Collection Staff for Chemba District Council ................................................................ 37 Table 17: Revenue Collection at Mwananyamala Hospital ........................................................................ 40 Table 18: New Source of Revenue for Chamwino and Chemba District Council ........................................ 42 Table 19: Recommended Places for PoS Installation for Chemba District Council .................................... 44 Table 20:Recommended Rates for Chamwino District Council .................................................................. 45 List of Figures Figure 1: Revenue Collection Structure for LGAs ........................................................................................ 15 Figure 2: Revenue Collection Trend for Chamwino District ........................................................................ 20 Figure 3: Revenue Collection Trend for Chemba District ........................................................................... 21 Figure 4: Main Source of Revenue for Chamwino District 2014/15 ........................................................... 23 Figure 5: Sources of Revenue for Chemba District 2014/15 ....................................................................... 25 Figure 6: Main Source of Revenue for Chemba District Council ................................................................ 26 Figure 7: percentage Own Source Budget Estimate against Actual Collected for Chamwino District Council......................................................................................................................................................... 29 Figure 8: Percentage Own Source Budget Estimated against Actual Collected for Chemba District Council .................................................................................................................................................................... 30 iii Acronyms CHF Community Health Fund CPU Central Processing Unit DED District Executive
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