June 29, 2025
Governance Briefs
Challenges and Prospects of Local Revenue Generation in Adaado District
- Revenue Generation in Adaado is Operational but Limited: Out of twelve potential revenue streams, only nine are currently active, with estimated annual revenues between $96,000 and $100,000—much of which is spent on salaries and operational expenses, leaving minimal funds for development.
- Religious Misconceptions and Trust Deficits Undermine Compliance: Negative perceptions of taxation—often framed as “Haram”—combined with mistrust in government accountability, significantly hinder local revenue collection efforts.
- Legal and Institutional Frameworks are Incomplete: Absence of clear guidelines on exemptions, non-enforcement of key taxes (property, water, and electricity), and resistance from utility providers weaken the broader tax infrastructure.
- Strengthening Accountability and Engagement is Essential: Improving transparency, engaging business communities and civil society, and enforcing proper accountability mechanisms are critical to enhancing revenue collection and restoring trust in Adaado’s local government.
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