This webinar will explore the key challenges of intergovernmental collaboration as well as lessons and solutions for improving this for better property taxation, with case studies from Tanzania, Ghana, Kenya and Angola.

1. International Centre for Tax and Development
www.ictd.ac
International Centre for Tax and Development
www.ictd.ac

2. International Centre for Tax and Development
www.ictd.ac
PROGRAMME
Introductory Remarks
Soukayna Remmal (ICTD)
Colette Nyirakamana (ICTD)
Presentations
Monica Obongo (Ministry of Lands and Physical Planning, Kenya)
Odd-Helge Fjeldstad (CHR Michelsen Institute)
Fariya Mohiuddin (International Budget Partnership)
Frank Ohemeng (Concordia University)
Carla Almeida (Ministry of Finance, Angola)
Q & A Session
Webinar Outcomes and Concluding Remarks
Frank Kalizinje (ATAF)
Soukayna Remmal (ICTD)

3. International Centre for Tax and Development
www.ictd.ac
International Centre for Tax and Development
www.ictd.ac
Colette Nyirakamana
Strengthening Intergovernmental
Collaboration for Effective Property
Taxation
Programme Lead, African Property Tax Initiative, ICTD
June 30, 2021

4. International Centre for Tax and Development
www.ictd.ac
Collaboration is Essential for Effective Property Tax Administration
 Property tax is a unique local tax: its administration is rooted in institutional
arrangements requiring collaboration between central and local governments both
in centralized and decentralized systems
 Allocation of roles varies significantly across countries – different allocations create
distinct technical, political and administrative dynamics
Property
Identification
Valuation Rate Setting
and Billing
Sensitisation
Collection
and
Payments
Compliance
and
Enforcement
Key areas for improved collaboration

5. International Centre for Tax and Development
www.ictd.ac
Property Valuation – A Key Area of Collaboration
Valuation is solely the responsibility of central governments
Valuation is almost entirely localized other than very broad
policy guidelines for valuing properties or setting rates
Valuation is a shared responsibility between local and central
government or administered locally with specific guidelines
from the CG.
Effective collaboration is especially needed and
challenging where property tax administration is a shared
responsibility between central and local governments

6. International Centre for Tax and Development
www.ictd.ac
Variation in Property Tax Administration Systems and Appropriate
Balance of Responsibilities
 Historical legacies and path dependence. Colonial systems tended to create
relatively complex formal systems, premised on the authority of central governments
in land registration, maintenance of cadastral registers and property valuation
 What is the appropriate balance of responsibilities?
 The proponents of more centralization argue that maintaining property taxation as a central
government responsibility creates more consistency in the process while preventing
collusion and poor management at the local level
 The advocates of decentralization argue that centralization can be overly costly, can be
slow moving and can be inflexible, in part because central governments can have weak
incentives and local knowledge – hence the necessity for simplified and more localized
approaches

7. International Centre for Tax and Development
www.ictd.ac
Why is Collaboration Difficult and Often Problematic?
 Ambiguous rules and institutional frameworks leading to opaque collaboration
and coordination
 Misalignment of incentives for collaboration stemming from the lack of
motivation to move quickly and effectively because a) the revenues from property
tax do not accrue to them; b) different priorities (land titling and not registers for tax
purposes)
 Divergent costs and resources: property identification and valuation at the central
government level are dependent, for example, on professional valuers – may be
prohibitively costly at local level where resources and skills are far more limited
 Political conflicts: administrative cooperation is likely to be undermined or blocked
by political rivalries

8. International Centre for Tax and Development
www.ictd.ac
How to Revitalize Inter-Gov. Relationships with Practical
Solutions?
1. When formal rules underlining the conditions for collaboration are not working, how
to reform those rules, or to find ways to make cooperation work better despite
problematic rules?
2. In situations where the rules are clear but collaboration strenuous, what informal
mechanisms based on mutual trust can help revitalize intergovernmental
relationships ?
3. How to create incentives that promote coordination and collaboration among
agencies and levels of governments?
4. How to align the incentives of those agencies with the needs of local revenue
collection?
5. What strategies can make intergovernmental relationships resistant to politics?

9. STRENGTHENING
INTERGOVERNMENTAL CO-OPRETATION
FOR EFFECTIVE PROPERTY TAXATION IN
KENYA
PRESENTED BY MONICA OBONGO
DEPUTY DIRECTOR – LAND VALUATION
MINISTRY OF LANDS AND PHYSICAL PLANNING – KENYA
30th June, 2021

10. INTRODUCTION
 The determination and governance of property taxation in Kenya is based on
various legislation. Taxes determined and collected by Central government
are:-
 (1) Stamp duty which is charged upon each transfer of property from one
owner to another.
 (2) Land Rent on leasehold properties. The amounts paid as land rent are based
on the approved land users and location of properties
 Land rates are however decentralized and determined and collected by county
governments
 The National or Central Government gives policy direction to county
governments on various matters including property taxation.

11. INSTITUTIONS AND ROLE IN
PROPERTY TAXATION
 The Ministry of Lands and Physical Planning is responsible for land titling,
supervision of cadastral plans and property valuation
 The Ministry’s functions are part of Central Government and in addition to its
core functions offers policy support to county governments
 The Ministry of Lands and Physical Planning as central government determines
and collects taxes in the form of Stamp duty levied on each transfer of property
at a rate of either 4% or 2% of the market value
 Each of the 47 Counties in Kenya are semi-autonomous and is responsible for
the determination of land rates – or taxes to be collected for economic growth
and development

12. LEGISLATION GOVERNING
PROPERTY TAXATION IN KENYA
 Valuer’s Act – Cap 532 – Licenses and registers valuation surveyors who are
charged with the responsibility of determining various property taxes in Kenya
 Valuation for Rating Act Cap 266 empowers the county governments to value
land and impose taxes in the form of land rates. It also stipulates the procedure
to be followed in the preparation of a valuation roll
 Rating Act – Cap 267 provides for the imposition of rates on land and buildings
in Kenya
 Stamp Duty Act, Cap 480 provides for the method and amounts to be levied on
buyers of land and buildings upon transfer of property
 Land Registration Act, 2012 – provides for the determination and collection of
ground rent on leasehold properties in Kenya

13. CHALLENGES FACED AS A RESULT OF LACK OF CO-
OPERATION BETWEEN CENTRAL AND COUNTY
GOVERNMENTS IN PROPERTY TAXATION
 A good tax system should meet five basic conditions; fairness, adequacy,
simplicity, transparency and administrative ease. The lack of co-operation
between central and county governments in Kenya has led to lack of fairness
and each county imposes its own set of basis of valuation for rating, amounts of
tax levied and penalties for late payment
 Upon transfer of property, the seller is expected to provide a land rent
clearance certificate and a land rates clearance certificate; provided by the
central and county government respectively. This has sometimes led to long
transaction times and economic loss
 Land information systems in both county and central government has been
manual posing administrative challenges in tax administration

14. THE NATIONAL LAND INFORMATION SYSTEM
AS A TOOL FOR EFFECTIVE PROPERTY TAX
ADMINISTRATION
 The National Land Information System was launched by the president of the
Republic of Kenya on the 27th of April, 2021 and is commonly referred to as
ARDHSASA
 One of the components of the NLIMS is a cadastre covering the entire country
 The Ministry of Lands and Physical planning is in the process of putting in
place a National Land Value Index that will have a value map that can easily be
overlaid on the cadastre to enable mass appraisal/valuations and equity in
taxation by both county and central government
 A digital database has the benefit of linkages and information sharing to ensure
ease of doing business when conducting land transactions in Kenya. This ease
of doing business translates to economic growth and development and investor
confidence

15. STAKEHOLDER ENGAGEMENT WITH
COUNTY GOVERNMENTS IN NLIMS
ADOPTION
 The constitution of Kenya requires ta stakeholder engagement for any policy or
change in management structure by central government that would affect the
operations of county government and the general public
 Stakeholder engagement on the NLIM’s adoption strategy has been done for
the Governors, and Chief Executives in charge of land in all 47 counties. The
Governors and Chief Executives in Charge of Land in the various counties will
in turn be change ambassadors to ensure successful adoption of NLIMS
 The County Governments are in the process of digitizing and scanning their
land documents for integration with the central government data on the
NLIMS

16. BENEFITS OF NLIMS LINKAGES FOR
PROPERTY TAXES IN KENYA
 Mass appraisal to determine land rates and land rents and ensure efficient
revenue collection
 Faster decision making across both arms of government. Information would be
readily available for investment decision making and tax analysis
 Investor confidence in the country due to improved ease of doing business
 Transparency and accountability in property tax governance
 Mapping of green spaces, government land, national monuments, roads and
rails and ensure infrastructural development

17. THANK YOU

18. Challenges and strategies for effective
intergovernmental collaboration in property taxation:
the case of Tanzania
Odd-Helge Fjeldstad
30 June 2021

19. The case of Tanzania: Property Tax (PT) reforms 2008-21
 Oscillating between decentralised and centralised collection regimes
1) Pre-2008 (decentralized): PT administered and collected by municipalities (MCs)
2) 2008 - 2014 (centralized): Tanzania Revenue Authority (TRA) collects PT on behalf of MCs in
Dar es Salaam
3) 2014 - 2016 (re-decentralized): PT adm. and collection returned to MCs
4) 2016 – 2021 (re-centralized): TRA mandated to adm. and collect PT all over the country
5) Budget Speech 2021/22: Minister of Finance proposes that PT shall be collected by TANESCO

20. The case of Tanzania: Revenues from PT in Dar es Salaam
municipalities, 2005-17 (in million TZS)

21. Central–Local Government relations in PT collection, 2008-14
• Treasurer in municipality in Dar es Salaam (interview, 15 October 2014):
• “Interaction between the Municipality and TRA was very difficult. In the
first place, TRA considered itself superior to the municipality”

22. Central – Local Government relations, 2008-14 (cont.)
Factors affecting the outcome:
1) Politics
• Top-down driven (directive)
• TRA: Poor incentives
• Municipalities: Lost ‘control’ of revenue collection
• Incongruent goals between TRA and the LGAs
• Distrust and preconceptions
• TRA  Municipalities
2) Technical design
• Poor preparation and implementation
• Outdated property registers and valuation rolls
• TRA introduced payment via bank deposits + TIN
• Reinforced distrust TRA  Municipalities

23. Re-decentralized period, 2014-16
• PT collection started to increase during last year of TRA collection (2012-13)
• TRA introduced new collection and payment methods, incl. payment via banks
• Major increase in PT collection after decentralization 2014:
• Mass evaluation of properties
• Municipalities continued the TRA-introduced bank payment system
• MCs introduced mobile-phone based payment systems like M-pesa and the
electronic payment system Max Malipo
• MCs started to use mtaa (street) leaders to notify property owners and collect the
tax  an incentivized system

24. Re-decentralized period, 2014-16 (cont.)
• Elected councillor in DSM-municipality (interview, October 2014):
• “Re-decentralization of property tax administration is a perfect move. From the
time TRA started to collect property tax revenue deteriorated”
• “I strongly believe that the collection by the municipality will be far better than
that of TRA”
• “First and foremost is that the municipality knows that it is collecting the
money to finance its budget so all efforts will be instituted to meet the target”

25. Re-decentralized period, 2014-16 (cont).
• Senior revenue officer in TRA (interview, 21 October 2014):
• “All Municipalities are very happy about re-decentralization of property tax
collection because right from the start when TRA took over they were disappointed”
• “They have been trying to make tricks so that TRA is perceived inefficient”
• “For example, when TRA took over all municipalities set larger targets to TRA year
after year despite the fact that tax base remained the same”
• “The whole process has been facing misunderstanding between TRA and
municipalities to the extent that a Regional Committee was formed to discuss
differences between them and come up with solutions”

26. Re-centralized period, 2016-21
• From FY 2016/17 adm. and collection of PT came under TRA for the whole country
• The decision took both TRA and the MCs by surprise
• What were the arguments behind this decision - in spite of poor experiences from the
period 2008-14?
• The decision was based on (from Budget Speech 2016/17):
• “LGAs own sources were below the target due to inefficient revenue collection systems
and low property tax collection compared to the available potential”
• TRA’s experience in revenue collection
• TRA’s existing tax collection systems and country wide coverage
• Lessons from other countries like Ethiopia and Rwanda
• Domestic politics: To undermine the financial basis of opposition led MCs?

27. Budget Speech, delivered 8th June 2017 by the Minister of Finance
To make the re-centralized PT regime work, the Minister emphasizes the
importance of intergovernmental collaboration:
•“[I] urge all stakeholders, including property owners, council
officials, district commissioners and TRA officials to work hand in
hand in fulfilling this important task for development of our
communities and the nation at large"

28. Lessons from Tanzania: Challenges and strategies for (effective)
intergovernmental collaboration in PT
• TRA has been a catalyst for improvements in collection methods at the local level by
introducing new digital payment methods
• TRA has contributed to reduce the degree to which local elites are able to evade PT
• But, in contrast to the municipal staff, TRA has limited knowledge about the PT base
• TRA relies on information collected at the local government level
• The MCs had limited incentives to collaborate and share data with TRA
• Inadequate statistical information on the property tax base remains a severe constraint
• The lack of intergovernmental consultations before and during implementation of the
reform contributed to distrust between the involved agencies
• TRA had limited capacity to take over the PT-regime and was provided with limited
additional resources to build capacity

29. Lessons: Strategies for (effective) intergov. collaboration in PT (cont.)
• To make PT collection work requires cooperation, exchange of information and proper coordination between
the national revenue adm. and the municipalities
• Clarity on the division of functions and responsibilities of the central and sub-national adm. is critical
• The national revenue adm. and the MCs must both be provided with incentives to cooperate
• The tax collecting agency can only do what the current legislation allows it to do
• Important to assess how and to what extent politicians and officials at both central and sub-national levels will
provide support to the tax reform
• Make it simple, quick and hassle free for property owners to register and pay PT
• Move towards an integrated eGov system - but avoid being overambitious in the short run:
• Improve inter-governmental cooperation by linking the basic revenue adm. components, such as PT-
database maintenance, billing and enforcement, with other revenue sources such as business permits,
house rents, land rents, and user charges

30. What now in Tanzania?
Budget Speech, delivered 10th June 2021 by the Minister of Finance
•“It was a mistake to hand over the collection of property tax to the
Tanzania Revenue Authority”
• The Minister proposes that PT shall be collected by TANESCO (the
national electricity supplier)
• People will pay PT when one buys electricity whether one is property
owner or tenant
• If implemented, this will imply that “PT” will be a tax or fee on
residency, not property ownership

31. THANK YOU FOR YOUR ATTENTION!
Odd.Fjeldstad@cmi.no

32. The Enigma of Central and Local
Governments Relationship and the
Impact on Property Tax
Administration in Ghana
PRESENTED BY:
FRANK L.K. OHEMENG, PHD
CONCORDIA UNIVERSITY
&
FARIYA MOHIUDDIN, MGA
SENIOR PROGRAM OFFICER, TAX EQUITY, INTERNATIONAL BUDGET PARTNERSHIP

33. Outline of Presentation
 Background and Context
 Our Findings
 Policy Recommendations
 Recent Developments
 End of Presentation

34. Background & Context
 In the context of Ghana, our key questions
 How does the relationship between the central and local
government affect the administration of property tax in
Ghana?
 What challenges do the relationship between the central and
local governments pose in property tax administration in
Ghana?
 What is the appropriate role of the central government in
supporting the effective administration of property tax by
local government?

35. Our Findings
 Institutional despondency and inertia
 Politicization of local government by the
centre
 Institutional fragmentation and the lack of
coordination among central government
institutions
 Financial and human capacity problems with
local government entities

36. Policy Recommendations
 Changing the institutional foundation of local
government administration in Ghana
 Revising other institutional frameworks governing
local government
 Engaging the private sector in property evaluation
and allowing the Land Valuation Department to
become a regulator rather than a direct service
provider
 Granting significant autonomy to the assemblies
in property tax administration

37. Recent Developments
 “Granting significant autonomy to the
assemblies in property tax administration”
 Since then, Local Governance Act 936 (2016)
essentially centralizes the setting or property
rates (Section 148.8, 148.11) compared to Local
Government Act 462 (1993)

38. Recent Developments
 “Engaging the private sector in property
evaluation and allowing the Land Valuation
Department to become a regulator rather than a
direct service provider”
 Since then, “private” and simplified mass valuation
efforts through digital platforms –
 VNG (Netherlands) – 26 MMDAs
 GIZ (Germany) – 66 MMDAs
 Land Valuation Division itself

39. Thank You
 Frank L.K. Ohemeng, PhD.
fohemeng@uottawa.ca and
ohemenfl@gmail.com
 Fariya Mohiuddin, M.G.A.
fariya.mohiuddin@gmail.com

40. FORTALECIMENTO DA COLABORAÇÃO INTERGOVERNAMENTAL PARA TRIBUTAÇÃO EFECTIVA DA PROPRIEDADE (ATAF/APTI Webinar - June 30, 2021)
A Tributação do Património em Angola
Junho de 2021

41. A Tributação do Património em Angola – ATAF/APTI Webinar - June 30, 2021
Introdução
Reforma da Tributação do Património em Angola
Cadeia da Regularização da Propriedade Imobiliária
Números da Regularização da Propriedade Imobiliária
Sumário
Potenciação da Tributação da Propriedade Imobiliária
Conclusões
6
1
2
3
4
5

42. 1- INTRODUÇÃO
1
 A tributação do património imobiliário em Angola enfrenta desde o período pós - independência a
problemática da omissão na matriz predial fiscal;
 A nacionalização e o confisco da propriedade colonial pelo Estado não culminou com o registo predial;
 A obsolescência do sistema de avaliação, inibiu por muito tempo, a tributação do património;
 Os novos planos urbanísticos, operações de loteamento, concessão e construção não foram comunicados
ao órgão executor da política fiscal do Estado;
 Sendo a eficácia fiscal da tributação sobre a propriedade dependente da qualidade e actualidade da base
cadastral, a sua ausência contraiu acentuadamente a receita fiscal
A Tributação do Património em Angola -ATAF/APTI Webinar - June 30, 2021

43. 2 - REFORMA DA TRIBUTAÇÃO PATRIMÓNIO EM ANGOLA
2
Código do Imposto
Predial (actual)
Lei de alteração
Código do Imposto Predial
Urbano
Lei n.º 20/20 ,de 9 de Julho de 2021
Lei n.º 18/11, de 21 abril de 2011
Código do Imposto
Predial Urbano
▪Diploma n.º 4044 de 1970 (50 anos de
vigência)
Sistema de
avaliação fiscal da
propriedade
(Actual)
▪Decreto Presidencial n.º 81/11
▪De 25 de Abril
1
2
3
4
6
7
5
Cabinda
Uíge
Bengo
Benguela
Namibe
Huíla
Bié
Lunda
Norte
Malange
Lunda Sul
Moxico
Cuando Cubango
Cunene
Cuanza
Sul
Zaire
Luanda
Cuanza
Norte
Huambo
2 Reformas da tributação do património em Angola
A Tributação do Património em Angola -ATAF/APTI Webinar - June 30, 2021

44. 3 - CADEIA DA REGULARIZAÇÃO DA PROPRIEDADE IMOBILIÁRIA
Planos urbanísticos
(MINIPOT)
infraestruturação
das zonas elegíveis
(Prestadores)
Loteamento
(Gov Prov.Adm
Munic)
Inscrição fiscal
a favor do Estado
(AGT)
Registo predial a
favor do Estado
(DNRN)
3
Concessão
Estado/Direitos
Superfície
Imposto Predial
Transmissão
(AGT)
Constituição dos
direitos de
propriedade
Licenciamento obras
(Gov. Prov. Adm:
Munic
Alteração da
inscrição na matriz
predial
Alteração da
descrição no Registo
Predial
A Tributação do Património em Angola -ATAF/APTI Webinar - June 30, 2021

45. 4- DADOS DA PROPOPRIEDADE IMOBILIÁRIA - ANGOLA
4
1.246.700 km2
Dimensão territorial
Residências
135 447 Inscritos Matriz Fiscal
36 654 Registos Prediais
Habitantes
3,3 M
4 %
32,9 M
1 %
A Tributação do Património em Angola -ATAF/APTI Webinar - June 30, 2021
Fonte: Censo 2014 –Instituto Nacional de Estatística, Direcção Nacional de Registos e Notariados, Administração Geral Tributária

46. 4.1-DADOS DA PROPRIEDADE IMOBILIÁRIA EM ANGOLA
5
3,340,505
36,654
135,447
N.º de Habitações… Registo Predial… Registo Fiscal Matricial…
1
2
3
4
6
7
5
Cabinda
Uíge
Bengo
Benguela
Namibe
Huíla
Bié
Lunda
Norte
Malange
Lunda Sul
Moxico
Cuando Cubango
Cunene
Cuanza
Sul
Zaire
Luanda
Cuanza
Norte
Huambo
A Tributação do Património em Angola -ATAF/APTI Webinar - June 30, 2021
Fonte: Censo 2014, Direcção Nacional de Registos e Notariados, Administração Geral Tributária

47. 5 - POTENCIAÇÃO DA TRIBUTAÇÃO DA PROPRIEDADE IMOBILIÁRIA
6
 Redução das taxas fiscais de 30% e10% para 0,1%, 0,5%, 0,6% e 2% respectivamente;
 Digitalização dos serviços inscrição da propriedade na matriz fiscal
 Instituição legal do dever de informação ( das entidade públicas e privadas sobre actos praticados sobre a
propriedade;
 Janela única de Constituição do Direito Fundiário/ Registo do Imóvel - simplificação regularização fiscal e
jurídica da propriedade;
 Interligação do Sistema de Gestão do Imposto Predial com as Administrações Municipais e Conservatórias
de Registo Predial;
 Massificação do Registo Predial, visa cadastrar 800 mil imóveis até 2022 e estima 2,9 milhões de imóveis até
2025;
 Redução dos taxas da escritura pública de compra e venda e também do registo predial (do equivalente
528,9 euros para 33 euros);
 Criação futura do número único de cadastro da propriedade imobiliária – maior controlo fiscal
A Tributação do Património em Angola -ATAF/APTI Webinar - June 30, 202

48. 5.1-EVOLUÇÃO DA TRIBUTAÇÃO DA PROPRIEDADE IMOBILIÁRIA: 2011-2020
7
2014 2015 2016 2017 2018 2019 2020 2021*
25 271 715 727,00 27 527 090 046,00 31 262 833 103,00 31 374 180 306,00 33 888 692 398,00 41 224 911 842,00 43 870 076 362,00 24 447 380 596,00
A Tributação do Património em Angola -ATAF/APTI Webinar - June 30, 2021
Fonte: Sistema Integrado de Gestão Tributária –SIGT, Administração Geral Tributária

49. 6 - CONCLUSÕES
• Alargar a base da propriedade e desonerar o imposto predial - é uma política fiscal em curso;
• A regularização do património habitacional e não habitacional do Estado em curso irá permitir a regularização dos
património dos particulares;
• Esforços concertados das entidades intervenientes para regularização da propriedade;
• Simplificar a regularização fiscal e registal da propriedade - promover o cumprimento fiscal voluntário;
• Na forja o novo sistema de avaliação fiscal, mais justo e abrangente;
• Concluir a avaliação fiscal da propriedade - permitirá estimativa real da receita predial (Receita municipal
autárquica )
• Incremento na fiscalização sistemática e desmaterialização do imposto são pressupostos fundamentais para
sustentabilidade.
8
A Tributação do Património em Angola -ATAF/APTI Webinar - June 30, 2021

50. 50

51. International Centre for Tax and Development
www.ictd.ac
International Centre for Tax and Development
www.ictd.ac
Thank you
Merci beaucoup
Obrigada/Obrigado