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COMMISSION ON REVENUE ALLOCATION. ENHANCING COUNTY SOURCES OF OWN REVENUE Presentation by Commissioner Amina Ahmed at Safari Park Hotel, Nairobi 26 TH March, 2014. COMMISSION ON REVENUE ALLOCATION. WHERE CAN COUNTIES COLLECT REVENUES FROM.
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COMMISSION ON REVENUE ALLOCATION ENHANCING COUNTY SOURCES OF OWN REVENUEPresentation by Commissioner Amina Ahmedat Safari Park Hotel, Nairobi26THMarch, 2014
COMMISSION ON REVENUE ALLOCATION WHERE CAN COUNTIES COLLECT REVENUES FROM - A county may impose: (a) property rates;(b) entertainment taxes; and (c) any other tax it is authorized to impose by an Act of Parliament. - County governments may imposecharges for the services they provide .- County government may borrow, but only if the national government guarantees the loan, and with the approval of the county assembly.
COMMISSION ON REVENUE ALLOCATION WHAT ARE THE BOUNDARIES OF COUNTY REVENUE SOURCES - The taxation and other revenue raising powers of a county should not be exercised in a way that prejudices national economic policies, economic activities across county boundaries or the national mobility of goods, services, capital or labour.
COMMISSION ON REVENUE ALLOCATION SOME OWN SOURCES OF COUNTY REVENUE SOURCES • - Property rates • - Single Business Permits • - Cess • - Vehicle Parking Fees • Market Fees • House and Stall Rent
COMMISSION ON REVENUE ALLOCATION EXAMPLES OF COUNTIES ENHANCING OWN REVENUE SOURCES -To enhance their revenues, some counties plan to :(a) hire private ICT firms to digitize revenue collection;(b) establish their own Revenue Collection Agencies with a mandate similar to that of the Kenya Revenue Authority;(c) increase land rates and motor vehicle parking fees among other charges.
COMMISSION ON REVENUE ALLOCATION CHALLENGES IN REVENUE ENHANCEMENT INADEQUATE COLLECTION
COMMISSION ON REVENUE ALLOCATION COUNTY REVENUE PROJECTIONS AS CAPTURED IN THE 2013/2014 BUDGET
COMMISSION ON REVENUE ALLOCATION Challenges in Revenue Enhancement -Inadequacy of laws and legislation-Low levels of automation and use of Information and Communication Technology (ICT)- Financial/Budgetary Constraints in procuring systems-Embezzlement, fraud and corruption- Low levels of Stakeholder involvement and public participation-Political Interference
COMMISSION ON REVENUE ALLOCATION Strategies in Revenue Enhancement
COMMISSION ON REVENUE ALLOCATION Analogy of a Motor Vehicle as used to illustrate the Underlying Assumptions in revenue enhancement Skilled and Competent staff Right Attitude Infrastructure and equipment Conducive working environment
COMMISSION ON REVENUE ALLOCATION Strategies in Revenue Enhancement - Capacity enhancement: staff, skills and infrastructure- Taxpayer education and effective Public Participation- Expansion of tax payer base through registration and resource mapping (use of GIS)-Automation and digitization of the revenue process-Enactment of well drafted county finance laws-Establishment of effective Internal Audit Functions- Establishment of Public Private Partnerships
COMMISSION ON REVENUE ALLOCATION Reports Due to CRA from County Governments
COMMISSION ON REVENUE ALLOCATION Reports Due to CRA from County Governments
COMMISSION ON REVENUE ALLOCATION THANK YOU Q & A