Collection Rates are Highly Correlated with Computerized Municipalities

According to Business News, after surveying 57 Lebanese municipalities of different sizes and locations, the Consultation and Research Institute (CRI) concluded that computerized municipalities have better collection rates. In details, “collection rate of direct municipal taxes reached 62 percent in fully computerized municipalities, 58 percent in partially automated municipalities, and 38 percent in municipalities that are not automated.”

The survey further depicted that there is a high correlation between the collection rate and the municipalities’ capability to track Rental Value Fee (RVF) payment, which are municipal property-based fees imposed on the principal occupier of a property. Also, the survey identified that there is no relation “between the size of the municipality and the success rate in collecting RVF”, and the main drawbacks of collection facing municipalities are the inadequate number of workers and the high levels of poverty among residents.

Collection Rate by Municipality Type

Municipality TypeCollection Rate
Fully computerized municipalities62%
Partially automated municipalities58%
Not automated38%

Source: Business News

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