Assessment of Revenue Collection Efficiency in Local Government Authorities: The Case Study of Abbottabad

Abstract

Effective Local Government (LG) is the strength of a municipal development. To
provide its services efficiently, LG needs sufficient revenues. Local government
authorities (LGAs) face problems in revenue collection. Objective of the study is to
measure the causes of revenue collection efficiency in Abbottabad LGAs. Primary data
is collected through questionnaire survey and exploratory research design is employed.
The results indicate a positive correlation of transparency, administrative capability,
unwillingness of tax payers and employee’s commitment and implementation of laws is
found with revenue collection. While a negative correlation of political interference and
corruption is found with revenue collection. More over 3.3% of the respondents report
trade transparency/openness to be low in revenue collection in Abbottabad LGAs,
31.7% of the overall respondents mark high transparency/openness, while 55% of the
overall respondents mark trade transparency/openness to be very high. Similar views
are found regarding political interference. The analysis shows that 55% of the overall
respondents states that administrative ability to access revenue sources is very high
and commitment of employees in Abbottabad Local Government Authorities is
significant in sustaining and establishing an effective revenue collection. It is therefore
suggested that most modern computerized techniques must be introduced by LGAs in
revenue collection.