Challenges facing the property tax collection system: A case study of the City of Harare municipality

• Author: Hamudi, S.
• DOI: https://doi.org/10.47348/AMTJ/V2/i1a15
• Published date: 28 March 2022
• Date: 28 March 2022
• Citation: (2022) 2 AMTJ 288
• Pages: 288-306

https://doi.org/10.47348/AMTJ/V2/i1a15 288

CHALLENGES FACING THE PROPERTY TAX COLLECTION

SYSTEM: A CASE STUDY OF THE CITY OF HARARE

MUNICIPALITY

OBSTACLES AU SYSTÈME DE COLLECTIONS DE LA TAXE

FONCIÈRE: CAS DE LA COMMUNE DE LA VILLE D’HARARE

DESAFIOS DO SISTEMA DE COBRANÇA DE IMPOSTOS

SOBRE A PROPRIEDADE: UM ESTUDO DE CASO DA CIDADE

DO MUNICÍPIO DE HARARE

Simbarashe Hamudi*

JEL classification: E62

ABSTRACT

This article assesses the challenges facing the City of Harare’s property tax

collection system and proposes measures to improve revenue collection. The research

used interviews and questionnaires to collect data from the selected sample of

180 respondents tha t included municipality of ficials as well a s 137 residents of Harare

and 43 property tax administrators. The research used Excel to analyse the data.

The findings from the study show that Harare Municipality is facing administrative

challenges that have impacted its ability to meet revenue targets because they are

not digitalised. Moreover, major challenges such as unawareness of property tax,

inadequacy in the system and challenges associated with the digital era were also

identified. This article suggests that the challenges can be resolved by investing in

digital technology, infrastructure, taxpayer education, improving service delivery

of water, road maintenance, refuse collection and street lighting, reducing political

interference and improving transparen cy on the use of revenue from property tax.

Keywords: property tax, digitalisation, rates, revenue, municipality

RÉSUMÉ

Cet article évalue les obstacles auxquels fait face la ville d’Harare concernant le

système de collecte de la redevance domaniale/ taxe foncière et propose des mesures

pour améliorer la collecte des impôts. La recherche a utilisé les interviews et

questionnaires pour collecter les données à partir des échantillons sélectionnés de

180 répondants qui incluaient des agents communaux, ainsi que 137 habitants

d’Harare et 43 agents de la taxe foncière.L’analyse des données s’est faite avec

Excel. Les résultats de l’étude montrent que la commune d’Harare est confrontée à

des obstacles d’ordre administratif qui inhibent sa capacité à atteindre ses objectifs en

matière de colle cte fiscale parce qu’elle n’est pas numé risée. De plus, ont été égale ment

identifiés par l’étude, les obstacles majeurs tels que l’ignorance de la taxe foncière,

l’inadéquation du système, et les défis liés à l’ère du numérique. Cet article propose

*Transfer Pricing Manager at Tax Matrix: simbarashehamudi@gmail.com.

(2022) 2 AMTJ 288

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CHALLENGES FACING THE PROPERTY TAX COLLECTION SYSTEM: A CASE

STUDY OF THE CITY OF HARARE MUNICIPALITY 289

https://doi.org/10.47348/AMTJ/V2/i1a15

que ces obstacles peuvent être résolus en investissant dans la technologie numérique,

les infrastructures, l’éducation des contribuables, l’amélioration de la provision des

services en eau, l’entretien des routes, la collecte des déchets ménagers et l’éclairage

public, la réduc tion des interféren ces politiques et l’amélioration de la tran sparence sur

l’utilisation des revenus de la taxe foncière.

Mots-clés : taxe foncière , numérisation , taux , revenu , commune

RESUMO

Este documento avalia os desafios enfrentados pelo sistema de cobrança do imposto

predial na Cidade de Harare e propõe medidas para melhorar a arrecadação de

receitas. A investigação utilizou entrevistas e questionários para recolher dados

da amostra seleccionada de 180 inquiridos que incluiu funcionários municipais,

bem como 137 residentes de Harare e 43 administradores do imposto predial. A

investigação ut ilizou o Excel para analisar os dados. O s resultados do estudo mostram

que a Câmara Munic ipal de Harare enfrenta desa fios administrativos que afec taram a

sua capacidade de cumprir os objectivos em termos de receitas f iscais por não fazerem

uso de processos digitalizados. Além disso, foram também identificados grandes

desafios como o desconhecimento do imposto predial, a inadequação do sistema e

também os desafios associados à era digital. Este documento sugere que os desafios

podem ser resolvidos através do investimento em tecnologia digital, infra-estruturas,

educação dos contribuintes, melhoria da prestação de serviços de abastecimento de

água, manutenção de estradas, recolha de lixo e iluminação pública, redução da

interfer ência política e melhor ia da transparência na utiliza ção das receitas do imp osto

predial.

Palavras-chave: imposto predial, digitalização, taxas, receitas, município

I INTRODUCTION

Property taxation is one of the revenue-generating tools available to

local governments. It entails collecting property taxes and fees from

property owners and occupants as provided for by law (Mukarage,

2016). For communities, increasing the amount of property tax income

collected is a daily problem. Local governments enact policies and ru les

to streamline the property taxation process and make property tax

collection more effective and straightforward. Globally, property tax

is a critical source of locally raised revenue for municipal expenditures

and a dependable internal revenue source for municipal governments.

Property tax has traditionally been associated with local governments

because of its prominence and the inability of the tax object to relocate

as a result of t he imposed tax (Mosha , 2010). Becaus e of the link between

the types of services offered by local government and the increase in

property values, property tax is regarded as a relevant local source of

revenue (Mosha, 2010).

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