Whereas the primary objective of the Economic Growth component of the LGPA is to help target municipalities to increase own-source revenues, the objective of the local governance component is to aid them to use existing revenues more effectively.
LGPA provides technical assistance and on-the-job training to staff in the ten target municipalities on a variety of issues including tax collection, budgeting, borrowing, procurement, asset management, energy efficiency, and public services provision. This component both capitalizes on and enhances efforts undertaken in the Local Economic Growth component. Through better asset management practices, the municipality can identify assets that can be leased or disposed of to private investors for improvement. Improved tax collection allows the municipality to capture increased taxes from greater economic growth. Increased revenues from better asset management and tax collection allows target municipalities to improve the quality and efficiency of services provided to citizens and businesses.
Particular attention is being given by the LGPA to improving local tax systems and procedures. The Guidelines on the Administration of Local Taxes and Fees, a handbook on local tax administration, was published in January, 2009, and can be downloaded by following the above link. The handbook was developed with the assistance and endorsement of the Ministry of Finance and the Ministry of Interior, and provides a practical guide to help local tax administrators in their daily work. The first part focuses on tax policy and gives a description of the legislation authorizing and defining each local tax and fee. The second part focuses on tax administration and procedures for the administration of local taxes and fees including registration, assessment, inspection and tax enforcement procedures. In addition, the process of transparent reporting and the need for effective collaboration between the local tax administration and various central government institutions are incorporated in this handbook.
In addition, LGPA is working with partner municipalities to improve tax payer services through developing city-specific tax brochures and leaflets, conducting awareness sessions for small businesses on cash register requirements, and reducing one-on-one interaction with tax officials to reduce opportunities for corruption.
Following a comprehensive IT assessment of the LGPA's ten target municipalities, a program has been devised to address the capabilities and deficiencies of the target municipalities with respect to local tax administration. The program includes acquisition and installation of computer hardware and software, training, and technical assistance valued at over $370,000 USD. While initially focusing on tax administration, the IT assistance program will also help improve the municipalities' human resource capacity to use computer applications for asset management and websites.
LGPA has also produced manuals and/or training materials on asset management, municipal borrowing, and procurement. Copies of these documents can be downloaded from this site by clicking on Publications page.
For more information regarding this component, please contact Silvana Meko, Local Governance Team Leader, smeko@lgpa.al; 069 40 33 831.
LOCAL GOVERNANCE