VNG International is supporting local governments in generating their own source revenues. It has developed an integrated approach including process design, IT support, leadership training, and citizens participation.
Within a project financed by the EU Delegation in Addis Ababa we support medium-sized cities in Ethiopia to modernize their property taxation. After 3 years of implementation the results are encouraging. Revenues have increased three-fold, digital fiscal registers are built, and services have been provided to citizens.
The experience of the city of Yirgalem in Sidama Region is discussed in a conference on 13 and 14 March in Addis Ababa. Participants include national and regional authorities for Finance and Urban Development as well as mayors from several Ethiopian Cities. The discussions are animated showing the importance that cities attach to raising their income.
The timing of the conference is excellent as the new proclamation on property tax will most likely be endorsed this year in Ethiopia. Dr Mulay, head of the tax policy department of the Ministry of Finance commended VNG International and the European Union for the implementation of the project. He stated that the example of Yirgalem City Administration serves as a good example for other cities in Ethiopia.