Chapter. II REVENUE
| DOI | http://doi.org/10.1002/j.1099-162X.1956.tb01295.x |
| Date | 01 October 1956 |
| Published date | 01 October 1956 |
Cit.
II.
REVENUE
CHAPTER
II
REVENUE
TAXATION
3
Definitions
There seems to be some confusion in African local government legislation
over
the
use of
the
words
'tax'
and
'rate'.
We suggest
that
the
expression
'local
tax'
is normally sufficient to cover
what
is intended,
but
that,
if in
any
particular territory, it is
thought
necessary to use
'rate',
its
meaning should be
confined to a local
tax
based on
the
value of immovable property. We distin-
guish a local tax, which is a general levy for
the
purpose of raising revenue,
from a fee for services rendered
and
from a charge levied on consumers.
Local taxation in Africa
The purpose of local
taxation
is to raise enough money to
pay
for
the
local
services after all
other
forms of income have been
taken
into account. In
the
preparation of the annual estimates
the
tax
will be
the
last
item
to be
brought
to
account in balancing
the
budget. Nevertheless
it
is
the
most
important
item
to be considered and it will be
the
chief focus of interest
and
debate, because of
its
particular significance to each individual. The local
tax
is, or will become,
the
growing point of local government in Africa since, as we have said before,
it is
the
expression of
the
people's willingness to contribute service to
the
common need. We
think
that
this aspect of local
taxation
might be given
special emphasis by all organisations concerned with public relations.
In
the
past
too great reliance has been placed on
the
supposedly bottomless
purse of
the
central government,
but
the
time has come when local authorities
must
cease to look to the central government to shield
them
from
the
odium
of proposing new taxation. We suggest
that
the
policy most likely to help
local authorities to
take
up
their
responsibilities is
what
may
be termed
'the
policy of visible results'. In
the
situations with which we are dealing it is
imperative to strengthen
the
link between
taxation
and
services.
If
the
connection is sufficiently obvious,
the
people who will
the
end are
the
more
likely to will the means.
The most educative form of a local
tax
is one which gets things done. An
increase in local
tax,
named perhaps for education, if absorbed in increases of
salaries or in administrative expenses, is of little use in promoting avisual
understanding of
the
ways
and
means of local government. The fact
that
there are no visible results quite often leads to general accusations
that
councillors have pocketed
the
tax
for
their
own
private
use
and
a conflict
develops between
the
people
and
the
councillors who are supposed to represent
them.
Apolicy of visible results can only imply bringing local government nearer
and nearer to the people.
It
means having a large
number
of narrowly localised
ｾｭ｡ｬｬ
projects which can be executed one
after
the
other,
and
year
after
year,
1U preference to one or two large projects,
the
significance of which is not, in
this context, obvious to all.
Local authorities should refrain from
attempting
too much
at
once, and
the
most
salutary
restraint
is
the
obligation to collect
the
taxes
they
impose. The
only help which
the
central government should provide is
the
normal service of
courts to enforce
payment
according to law and of police to prevent breaches
of
the
peace.
It
should
not
collect local
tax
itself.
Paying
tax
according to
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