Country Ghana
Duration Start 1 January, 2015 till 31 December, 2016
Policy field(s) Taxation
Taxation
Public finance
Partners PBLQ HEC/ ROI
MAPLE Consult Ghana
Funding Royal Netherlands Embassy in Ghana
The Republic of Ghana currently counts 216 Metropolitan, Municipal and District Assemblies (MMDAs). These MMDAs are responsible for the development of their designated areas. However, this responsibility is not matched with sufficient funding. Currently, internally generated revenues make up approximately 15% of local government revenues. The overall objective of the project is therefore to contribute to an improved tax situation and revenue base at local level in order to enhance locally generated revenues necessary to finance public service delivery. The project aims at improving the tax compliance rate by enhancing insights in local tax gaps. This will be done by capacitating local key staff within the three MMDAs (Metropolitan, Municipal and District Assemblies) targeted as well as by assisting in (re)formulating internal procedures and processes. Depending on the specific local circumstances, the project aims at improving the collection of revenues in selected areas in each of the individual MMDAs.

The specific objectives are:
a. Increase the capabilities of three rapidly urbanizing cities to improve their institutional capacity for local taxation and to improve their services to the public.
b. Knowledge exchange to lay the basis for further strengthening of institutional capacities for local taxation at other institutions than the three selected MMDAs to improve wider service delivery to the public.
c. Complete a study and advise on how municipalities can benefit from IT and network infrastructure developments within Ghana, such as a modern network infrastructure, applications developed for the Ghana Revenue Authority (GRA) and applications for land and property registration.

The expected results of the project are:
a. Capacitated staff within each MMDA, aware and conscious of the challenges in local taxation, and able to further develop capacities and work processes at project's end.
b. Increased possibilities for further strengthening of personnel and institutional capacities at the three MMDAs, but also at other institutions.
c. Overview of IT and network infrastructure developments relevant for municipalities aiming at improving local taxation and public service delivery.

Beneficiaries: Kumasi Metropolitan Assembly, Sekondi-Takoradi Metropolitan Assembly and Tema Metropolitan Assembly.