Abstract:
This study examines the existing local government tax structures
The taxes are then evaluated with respect
in Uganda, Kenya, and Zambia.
to their effectiveness in furthering central government development
goals, and recommendations are offered for achieving more optimal tax
structures.
Some attention is given to the role of autonomous local
governmental units in each nation's political and economic structure.
Few studies have been conducted of local government taxation in African
countries, yet activities of local governments can greatly affect a
country's development process.
Studying three countries rather than one allows for greater
comparison of various taxes and methods, and by this approach, it is
hoped each country can draw on the experiences of the other two in
determining the efficacy of various tax structures.
The major portion of this dissertation is concerned with describing
and evaluating the taxes currently employed by local governments in
the three countries.
Historically, the major revenue source for local
governments has been the graduated personal tax, a unique type of income
tax levied in many African countries.
most local units in Uganda.
It is still the major tax for
Other taxes examined are assessment rates
(property taxes), cesses, licences, and school fees.
Taxes are evaluated on the basis of revenue potential, progressivity,
effect on resource allocation, and costs of collection.
The effect of
taxation on growth of GDP is discussed only superficially; growth of GDP is a major development aim of the three countries, but it is
affected primarily by central rather than local government taxation.
Since each of the countries is concerned with replacing expatriates
with nationals in both industry and government, a tax structure that
can be administered by citizens is desirable.
Information for this paper was obtained from governmental records
and publications and interviews with central and local government
officials in each country.
Certain taxes were found to be more
effective than others in meeting each country's aims.
cesses were found to be an undesirable tax.
In general,
Of major requirement is
the necessity of designing tax structures to meet the specific needs
of each individual country, rather than simply incorporating features
from the tax structures of developed countries or other LDCs.
