The legally defined tax regime was extremely complicated and this, together with the low capacity of tax administration, resulted in a system where the tax that individuals and businesses actually paid was highly arbitrary, albeit often following certain norms within a given geographical area or sector. The complicated nature of tax regulations and low capacity for enforcement created many perverse incentives and encouraged rent-seeking. Although the fiscal system was highly centralized in theory, and in many aspects continued to be in practice, the central government was not the only actor that could levy taxes or “charges” from citizens and businesses. These taxes or charges could also be levied by: (i) Township Peace and Development Councils, (ii) Village Peace and Development Councils, (iii) state and nonstate military organizations, and (iv) government organized “non- governmental organizations” (GONGOs) (Turnell 2011). A low level of transparency and rules-based procedures was a feature of how revenue was collected and how it was allocated for spending at all levels of the fiscal system.