Enhancement of municipal own source revenue mobilization for sustainable urban development

IRAS solution comes in as an all in one system that improves data management hence enabling fluent local revenue registration, assessment, billing, payment, and performance monitoring.

The Integrated Revenue Administration System (IRAS) is a web and mobile application platform that aids municipalities in collection of local revenue from registration, assessment, billing, paymentsensitization of taxpayers and linking the citizens to municipalities.

Our objective is to strengthen the Local Government’s Revenue Administration Capacity Leveraging Digital Technology.

Local Governments in Uganda have become increasingly dependent on Central Government transfers and the fiscal decentralization strategy is not fully achieving the intended objectives of devolution.
Own source revenues (OSR) as percentage of the Local Governments budgets have decreased from about 9% in FY2005/06 to only about 3% at present (Local Government Financing Study Report, LGFC 2012)

Current Local Government’s revenue administration system which is based on tax collectors and tax payers’ interface is prone to insufficient data on tax payers and revenue sources, poor taxpayer compliance, weak enforcement mechanisms, local tax revenue leakages, inadequate feedback mechanisms to taxpayers, high cost of doing business for tax payers and municipalities as it’s manual, ignorance about the different taxes and requirements, failure to engage revenue administration stakeholders among others, thereby resulting into under-collection of local revenue.

The World Bank, through a PPIAF trust Fund (TF), is supporting the development, piloting and deepening of Integrated Revenue Administration System (IRAS) in three municipalities (Nansana, Fort Portal and Gulu). The Government plans to roll out IRAS to all the twenty-two Secondary Cities (municipalities) supported under USMID AF.

The IRAS solution therefore comes in as an all in one system that improves data management hence enabling fluent local revenue registration, assessment, billing, payment, and performance monitoring.
Also worth noting is the improvement in transparency, accountability, efficiency and effectiveness in service delivery to the citizens.

Currently IRAS is operational in the Local Governments of Nansana, Gulu, Fort Portal, Amuria, Yumbe, Zombo and Adjumani. Some of the achievements registered so far with the IRAS intervention include: auto tax computation, improved compliance supported by SMS alerts, reminders etc, self assessment, auto generation of receipts and licenses, increased revenue collection, an improved tax register, improved monitoring and reporting, convenience-payment is made from anywhere, reconciliation and receipting is instant among other things.

Our operations are aligned with the UN Sustainable Development Goals i.e.Sustainable cities and communities, peace, justice and strong institutions and industry innovation and infrastructure.

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