Article Sustainable Municipal Finance for Suthra Punjab: A Comparative Study of the Excise & Taxation Department and Municipal Committees
DOI:
https://doi.org/10.5281/zenodo.21776712Keywords:
Suthra Punjab, Solid Waste Management Fee, Urban Immoveable Property Tax, Excise & Taxation Department, Municipal FinanceAbstract
Purpose: This paper presents a strategic financial model for a systematic imposition and collection of the Suthra Punjab Fee (SWMF) through use of database prepared by the Excise & Taxation Department Punjab in respect of the potential residential and non- residential taxpayers for urban immoveable property tax (UIPT).
Design/Methodology/Approach: It is observed: performance gap is attributable to institutional design instead of legal asymmetry since the two agencies possess at-least equivalent enforcement powers. It also highlights structural weaknesses of the LGs as revenue collecting agency using case study of the MC Sadiqabad and interestingly confirms this institutional disparity as systemic through expansion of the comparison across multiple urban rating areas in Punjab.
Findings: The observed performance gap is attributable to institutional design instead of legal asymmetry since the two agencies possess at least equivalent enforcement powers. The paper also highlights structural weaknesses of the LGs as revenue collecting agency using case study of the MC Sadiqabad and interestingly confirms this institutional disparity as systemic through expansion of the comparison across multiple urban rating areas in Punjab. Additionally, the author proposes an extension of the model to the rural areas on the plea that the Suthra Punjab delivers the rural areas the same civic amenities, which were earlier unavailable to rural residents.
Implications/Originality/Value: The study makes the case that the Suthra Punjab Program’s long-term financial viability depends on the consistent recovery of the consolidated Property Tax, which cannot be accomplished without the E&T Department serving as the main collecting agency. This creates justification for inclusion of rural areas into rating area framework.
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