Administrative costs
One consequence of the present local revenue system is the high costs of tax
administration.
In Kilosa DC, for instance, the wage bill represented about 80 per
cent of total own revenues reported in 1995.
The corresponding figure for 1996
was about 64 per cent. However, when dis aggregated by wards, large variations
are observed. In some wards in Kilosa DC, the administrative costs are higher
than the revenues remitted to the council (Figure 1). For instance, in Lumbiji ward
the wage bill was 2.75 times higher than the revenues reported in 1996. The
corresponding figures for Mwatani and Ulaya wards were 1.92 and 1.44,
respectively. In Kidodi ward the wage bill corresponded to 18 per cent of the
reported revenues from the ward. In Kibaha DC we also found large differences
between the wards (Fjeldstad and Semboja, 1999).