administration and capacity to generate own source revenue DEALS - - PowerPoint PPT Presentation

Strengthening Beira Municipality by im improving la land administration and capacity to generate own source revenue

DEALS team: Peter van Tongeren, resident project manager Nicole Boot, PFM SR Project Manager Chloé Krantz, JR Project Manager

March 2020

CFM - Dredging access channel and sand fill CMB Coastal Protection Port access road Maraza low cost resident area – LDC/NL Urban drainage phase 1 – World Bank Sewage mains to Munhava and Maraza Munhava industrial zone – LDC/NL FIPAG water – WB/NL

Disaster Risk Management Strengthening Beira Municipality including land registry and own revenue improvement

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Overall project objectives

Strengthen the capacity of the municipality Improve land administration;

• Indexing and digitalizing Cadastre
• Support development of Land Administration (Information) System
• Organize compensation and resettlement for development of a residential

area

Improve capacity to generate own source revenue

• Improve property tax revenues

Overview map

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Tax component

• Objective: Improvement of the property tax revenues
• The focus of municipal tax management should be the

property tax (IPRA), due to its predictability, annuality and high revenue potential

• To increase revenue, interventions are being made in:
• Systems & Technology
• Procedures
• Staff
• Installations

Chain of Land & Property Registry - Taxation

Urban Planning Allocation

• f land

Temporary Title Construction license Survey Property title Tax payer register Billing Payment Debt control

Land and property registry Taxation

Activities 2019

Workshop to make a roadmap 2019 for property tax x im improvement

Compensation proces ‘machambeiras’

IMPACT OF IDAI

Damages & losses

Study-visit Maputo - Matola

Start first training ‘machambeiras’

Activities 2020

DEALS flexible response programm

30.000 land titles – 8000 construction licenses

More Young Africa trainings

Workshop Dutch Embassy

Development of tax revenues (MZN)

The Municipality of Beira has a total of 5,409 Municipal Property Tax Payers to date, of which:

• 125 Collective Tax Payers
• 5.284 Singular Tax Payers

SOURCE 2016 2017 2018 2019 Property Tax (IPRA) 43.497.207,20 43.553.719,50 59.484.084,35 60.199.689,16 Transaction Tax (SISA) 8.585.573,88 8.091.976,49 11.983.037,62 27.016.910,89 Economical Activity Tax (TAE) 41.097.735,04 43.438.990,73 44.283.793,59 46.666.418,46

PRESENT SITUATION: LOW PROTECTION HIGH REPAIR | NO O&M O&M: 0,49 M USD/y* LOW TAX INCOME NEW SITUATION: HIGH PROTECTION LOW O&M O&M: YYY USD/y HIGH TAX INCOME COASTAL PROTECTION RECONSTRUCTION CAPEX: 90 M USD PROPERTY TAX IMPROVEMENT PROJECT

2020: 1.27 M USD/y 2025: 1.47 M USD/y**

ROAD MAP COASTAL PROTECTION IMPROVEMENT FEBRUARY 2020

* Repairs from 2010 – 2019 divided in:

• Municipal: 0,14 M USD/y
• Donors: 0,32 M USD/y
• Private sector: 0,03 M USD

** Assumptions:

• 2020: 10.000 tax payers
• 2025: 15.000 est. tax payers + decreasing

property tax per contributor.

Opportunities Challenges

• Ownership at municipality level,

mayor, alderman and civil servants;

• Cyclone IDAI, new investments in

infra-structure;

• Multi stakeholder involvement on

higher level.

• There is another concept of ‘time’

in Africa.

• Align all activities from

registration to taxation

• The coordinating role from the

municipality to align all projects

• Operations & Maintenance
• Sustainability of our own project

Discussion

• How to ensure the coordinating role from the municipality and

align all projects?

• How to ensure Operations & Maintenance?
• How to make our project sustainable?