Abstract
Accelerating municipal revenues is very important for good decentralization. In Benin, despite the difficulties, the municipality of Cotonou is trying to put in place mechanisms to significantly improve its income. Thus, this research aims to analyze the impact of the concentration of economic activities on the increase in non-revenue taxation in the city of Cotonou specifically on secondary markets from 2013 to 2016. Results from an estimate of an ARDL model show that, in the short term, market rights and revenues from public latrines have a positive impact on non-tax revenues. The effect of place rights on the market is not significant, while revenues from the operation of public latrines have a significant impact on non-tax revenues. In the long term, the study reveals that marketing rights have a positive effect on non-tax revenues, but not in a very significant way. Revenues from the operation of public latrines, on the other hand, still have a positive impact on non-tax revenues. It is therefore urgent to find adequate answers since marketing rights and public infrastructure revenues must be the driving force behind the growth of non-tax revenues and, in turn, total revenues.
Highlights
The debate on the place to be occupied by the municipalities own revenues in a decentralized system has been heated, full of criticism and controversial positions
Through its positive action on non-tax revenue, a 1% increase in public operating revenues leads to a 0.77% increase in non-tax revenue in the short term
These effects are rather reversed over time: the mobilization of the products of public exploitation of a year ago is an obstacle to the growth of non-tax revenues of the town hall of Cotonou
Summary
The debate on the place to be occupied by the municipalities own revenues in a decentralized system has been heated, full of criticism and controversial positions. In order to help local authorities to strengthen local policy and the mobilization of revenue, BAKO et al (2009) considers that the mobilization and transparent management of financial resources are among the major questions which local and regional authorities are currently facing According to these authors, the collection of taxes and taxes at the local level is low due to the unwillingness of the people to fulfill their tax duty as a good patriot. By putting the mobilization of revenues as a factor influencing development at the base, SONSARE (2002) shows that the mobilization of resources constitutes an essential link in the development of the commune and the resources of local communities must be sufficient and increasing To this end, and apart from the freedom to mobilize some of their resources themselves, the State grant aid or subsidies to the new municipalities resulting from decentralization. If the investment revenue does not exist, the municipalities are not entitled to hope for development
Sign-in/Register to view highlights & summary Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
