Revenue Collection Research Articles

Exploring the relationship between individual tax culture and Schwartz’s higher-order personal values among accountants as taxpayers in Slovenia

The OECD has called for a stronger and more dynamic sustainable tax-paying culture that countries must cultivate and a more robust ethical profile for individual taxpayers. The individual tax culture might vary in the significance attributed to values influencing taxpayers’ perceptions toward taxation. As the hierarchy of values can be influenced through manipulation, policymakers can leverage knowledge of the relationship between higher-order personal values and individual tax culture to enhance tax revenue collection. This study aims to measure the relationship between Schwartz’s higher-order personal values and taxpayers’ culture, assessed through attitudes toward tax evasion, tax compliance, and the tax system. A survey was administered to the Slovene taxpayers (69 accountants and 130 non-accountants). The assumption was that the personal values system of accountants ought to underpin their ethical tax decision-making because of the professional accountants’ ethical codes. As professional accountants play a crucial role in maintaining stability for businesses, they hold a significant position in ensuring the effective operation of taxation systems. Exploratory factor analysis was used, and the analysis was carried out using the principal component method. The findings indicate that some higher-order personal values, particularly self-transcendence (r = 0.244) and self-enhancement (r = –0.403), are significant in explaining ethical behavior. Within the self-enhancement value, power and achievement strongly influence the ethical behavior of accountants. The perception of power associated with their expertise makes accountants less tax-compliant. Conservation values are of greater importance for non-accountants (r = 0.280). The results enhance comprehension of values’ influence on ethical decision processes.

Assessing Taxation Revenue and Perceptions of Tax Reforms in Post-Demonetization India

This research paper endeavors to provide a comprehensive analysis of taxation revenue in India, specifically focusing on Income Tax and Goods and Services Tax (GST), during the post-demonetization era. Additionally, it seeks to explore the perceptions of three key stakeholder groups taxpayers, tax professionals, and government officials—regarding tax reforms and their influence on tax evasion in India. The study commences by evaluating the taxation revenue of the Government of India in the aftermath of the historic 2016 demonetization move. It scrutinizes the impact of tax reforms such as the introduction of GST and changes in Income Tax regulations on revenue generation. By employing empirical data and statistical analysis, this research aims to shed light on the effectiveness of these reforms in enhancing government revenue collection, promoting fiscal transparency, and curbing tax evasion. Furthermore, this paper delves into the perceptions of taxpayers, tax professionals, and government officials concerning tax reforms and their implications for tax evasion in India. Through surveys, interviews, and qualitative analysis, it investigates the diverse viewpoints held by these stakeholders. This qualitative dimension of the study provides a nuanced understanding of how tax reforms are perceived and whether they have altered the behavior of taxpayers and the enforcement strategies of government officials.
 The outcomes of this research hold significance for both policy formulation and academic discourse. Insights derived from the analysis of taxation revenue can guide policymakers in refining tax policies, optimizing revenue collection, and fostering economic growth. Simultaneously, an exploration of perceptions surrounding tax reforms offers valuable insights into the behavioral dynamics of taxpayers, the challenges faced by tax professionals, and the strategies employed by government officials in enforcing tax regulations. this paper Demonstrate a holistic examination of taxation revenue in post-demonetization India, with a specific focus on Income Tax and GST. It also provides a unique perspective by investigating the perceptions of taxpayers, tax professionals, and government officials regarding tax reforms and their impact on tax evasion. By combining empirical data with qualitative insights, this research contributes to a more comprehensive understanding of the complex relationship between taxation revenue, tax reforms, and stakeholder perceptions in the Indian context.

DIGITAL SUPPORT OF THE ORGANISATION AND METHODOLOGY OF THE TAX AUDITS AS A FACTOR OF THE FINANCIAL SECURITY

In modern economic conditions, taxes are one of the main sources of filling state funds, which are necessary to ensure the social and economic well-being of the state and society. Unfortunately, tax evasion, aggressive tax planning and non-compliance with tax laws are widespread. This, in turn, affects the quality and accessibility of government programmes. Non-compliance undermines the fairness of the tax system, as those who do not pay their fair share shift the burden to other taxpayers. Non-compliance undermines the fairness of the tax system because those who do not pay their proper portion shift the burden to other taxpayers. In the same way, businesses that do not pay their proper portion have an unfair competitive advantage over businesses that comply with the law. From a review of the development of information technology, its impact on markets and the economy, and taking into account the challenges that have emerged for tax authorities and taxpayers in the context of the spread of pandemic, war state, the issue of transforming the tax administration system in order to implement it effectively has become even more acute. As a consequence, there is a trend towards global digitalisation of tax information, introduction of new technologies for tax administration. Strengthening compliance with tax legislation and collection of sufficient revenues is a prerequisite for filling the state budget and ensuring public needs. This is why tax authorities are digitally transforming and automating their systems. The implementation of technology can ensure successful and sustainable tax reforms, ensure proper taxation of the digital economy and reduce compliance obstacles for taxpayers. Today's challenges have led to a boom in the use of digital technologies in public administration and made it particularly relevant to implement them in tax procedures.

Transparency in Financial and Fiscal Affairs at Municipal Level: The Lessons from the Gandaki Province, Nepal

Transparency in Financial and Fiscal Affairs at Municipal Level: The Lessons from the Gandaki Province, Nepal

Tax education and taxpayer enculturation: Initiatives for South Africa

The South African Revenue Service acknowledges that it faces various risks, such as revenue collection uncertainty, unfavourable public perceptions and low compliance. Despite South Africa’s sophisticated taxation system, improvements to taxpayer education may provide the most comprehensive opportunity to allay these risks. This study examined taxpayer education strategies utilised in foreign countries to identify opportunities for initiatives that could be used to foster compliance-enhancing behaviour. In addition, the South African taxation infrastructure was assessed to determine its ability to integrate foreign compliance strategies. Three taxpayer education themes of enculturation, education and awareness were identified. Using a qualitative research methodology, 15 interviews were conducted with respondents who could provide knowledgeable opinions on the issues raised. The respondents confirmed the importance of these themes and the need to introduce the three tax education initiatives. This study recommends that taxpaying values be enculturated and normalised among future taxpayers before they leave school, that taxpaying aptitude, preparedness and confidence be developed by revising the financial, maths and tax literacy elements introduced throughout the school curriculum, as well as piloting an informative Taxpayers’ Week during Tax Season. The study’s contribution is unique in differentiating taxpaying skill development from taxpayer enculturation within school education. Practical direction is given to South African authorities concerning which tax education initiatives from foreign countries could be adapted and adopted. This study proposes novel initiatives and provides suggestions to optimise the existing taxpayer education and awareness efforts. Lastly, it contributes to the limited tax education and tax compliance literature.

ASSESSING IMPACT OF DEMONETIZATION AND RERA ON REAL ESTATE SECTOR

The Real Estate Sector is an aggregate made up of the housing, industrial, office and retail sectors; wherein, housing sector plays the most significant role. At any point in time, this sector may not be at demand-supply equilibrium because of frequent exogenous parameters and several uncertainties present. Sudden announcement of demonetization on 8th November 2016 and implementation of Real Estate Regulation (and Development) Act (RERA), 2016 with effect from 1st May 2017 have severally affected demand-supply equilibrium in Indian Real Estate Sector. Demonetization has adversely affected the Real Estate Sector with cash transactions getting eliminated and wiping out black money from the sector. Further, implementation of RERA aims to create a more transparent environment for property buyers by increasing the accountability of developers and regulating the Real Estate Sector. Therefore, assessment of impact of demonetization and RERA on Real Estate Sector has become inevitable to understand volatility resulting into the sector due to them and perspectives of important stakeholders about them.In this research paper, assessment of impact of demonetization and RERA on Real Estate Sector in the city of Pune has been carried out using analysis of Registrations of Documents, Revenue Collections, Annual Statements Rates and Market Rates of housing properties, and conducting primary survey of experts, developers, and buyers.

Road Tolling and Domestic Revenue Mobilisation in Zimbabwe

The study analyses the effectiveness of road tolling-systems as an instrument for mobilising domestic revenue in Zimbabwe. The study assessed the effectiveness of road-tolling systems in mobilising revenue to recoup the costs of building, operating and maintaining road infrastructure. Revenue performance was rated using the internal and external dimensions of toll revenue, which revolve around activities such as toll revenue collection, administration (remittance) as well as the Zimbabwe National Road Administration’s (ZINARA’s) distribution and usage of the toll revenue. By way of mixed methods research design, the study conceptualised and contextualised the theory, models, technologies and practices of toll revenue collection in Zimbabwe. The study found that the Zimbabwean road tolling model as a hybrid conventional tolling model is a progressive, effective and reliable tool to raise revenue for constructing road infrastructure and related road-related capital investments in Zimbabwe and that the internal toll revenue performance is up-to-date with reduced toll revenue leakages and increased toll revenue yield. However, the study found that there is no meaningful investment on the road network and related highway infrastructure thus making the performance of external toll revenue questionable. The study recommended the strengthening of toll revenue collection, management, remittance and toll fees usage.

Assessing tax collection efficiency of G20 countries: an analysis of tax potential, tax evasion and anti-corruption efforts

PurposeThis paper aims to determine the tax potential of G20 countries and estimate the tax revenue they could generate. The study evaluates the effectiveness of tax revenue collection for G20 nations from 2008 to 2020 and investigates the relationship between tax collection efficiency and tax evasion. The study also examines the link between tax collection efficiency and a proxy for tax evasion through anti-corruption efforts.Design/methodology/approachThe study assumes that tax collection is a function of gross domestic product (GDP), population, imports and price level. The study uses a stochastic frontier analysis to calculate the efficiency of tax collection. It estimates the loss in total tax collection due to inefficiency by comparing actual and best-practice tax collection.FindingsThe findings indicate that anti-corruption measures and technological advancements positively impact tax collection efficiency. Great Britain is identified as the most efficient country in tax collection, whereas Saudi Arabia is the least efficient. Germany has the highest losses in tax collection due to inefficiency, while Australia experiences the lowest losses in tax collection.Originality/valueThis study suggests several practical implications. For example, legislators and policymakers should pay more attention to anti-corruption policies. Also, tax agenesis should focus on better understanding variations in tax collection efficiency between countries and how they relate to tax evasion.

Unfulfilled Promises and Desires: The British South Africa Company (BSAC), Settler Politics and the Development of Southern Rhodesia’s Fiscal System, 1890–1922

This paper examines how the British South Africa Company (BSAC; the Company), the founding administrator of Southern Rhodesia, now Zimbabwe, navigated the creation of a fiscal system of the colony from 1890 to 1922 and how the fiscal system shaped political decisions regarding the colony’s administrative structure. It casts light on the early efforts of the colonial state-making process under the BSAC and how it established its administrative structure. Once occupation was completed, the Company’s ability to finance the cost of governance and administration was the most critical factor facing it. Whereas earlier scholarship has discussed various aspects of Southern Rhodesia’s early economic endeavors and political evolution, this paper demonstrates the significance of the fiscal system in shaping both the economic and political trajectories of the early administration. Through analyzing the Company’s revenue collection and expenditure patterns, the paper reconstructs the contours of shifting notions of what constituted the Company’s commercial and administrative revenue. It argues that the BSAC’s fiscal and budgetary administration approach was gradual, experimental, and sometimes ad hoc, resulting in continuous conflicts between the Company administration and the settlers. The paper relies on a wide range of sources that include the BSAC annual reports, historical manuscripts, Legislative Council debates, newspapers, and other political pamphlets to unpack the tensions between the Company government and white settlers over the fiscal and administrative evolution of the colony.

Impact of Outsourcing Tax Services on the Revenue Collection Performance among Counties in Kenya

Across the globe, many local governments face a financial crisis occasioned by their inability to raise sufficient revenue to finance their operation and meet the needs of their people. As a result, most of the local governments end up being over reliant on funds transfers from the central government to remain operational. To alleviate the weakness in revenue collection, the use of agents/third parties to collect revenue on behalf of the local authorities (commonly referred to as outsourcing) has gained popularity in recent years all over the world. To enhance their revenue performance, many of the governments around the world have sought to outsource their tax services. In view of this, the current study sought to establish the impact of outsourcing tax services on revenue collection performance among County Governments in Kenya.Specifically, the study explored the impact of outsourcing of ticketing services, outsourcing of property rates collection and outsourcing of licencing on revenue collection performance among Counties in Kenya.The study used a descriptive research design. The target population of the study was the 47 Sub County Revenue Collection Units in Kenya.The study utilized secondary data which was collected using a Secondary Data Collection Sheet. The study data was analyzed through descriptive statistics and presented through percentages, frequencies, mean and standard deviation. In addition, the study applied the ANOVA test and F ratio at a significance level of 5% to test the study’s null hypothesis that there was no difference between pre and post IT outsourcing revenue collection performance.The statistical analysis was performed using the Statistical Package for Social Science (SPSS version 23.0).The study findings were presented in tables. The study found that the difference between the pre and post outsourcing of ticketing services, property rates and licencing revenue collections among Counties in Kenya was statistically significant.The study findings also showed that the increase in the mean values of revenue collected from ticketing services, property rates and licencing was higher in the post-outsourcing period than in the pre-outsourcing period.The study concluded that outsourcing of ticketing services, property rates collection and licencing had a significant impact on the revenue collection performance among Counties in Kenya. To continually improve its revenue collection performance, the study recommends that the administration of County Government in Kenya.should consider outsourcing revenue collections from sources that are not yet outsourced. Further, the County Government should continually review its outsourced revenue collection functions in order to ensure that they are meeting the intended objective of helping the county maximize its revenue collection performance.

Enhancing Road Infrastructure Financing in Malawi: A Comprehensive Analysis & Recommendations

Purpose: This research study aims to critically analyze the effectiveness of Malawi’s road funding model, identify its strengths and weaknesses, and propose sustainable and innovative road funding model for improving road infrastructure financing in the country. Background: The inadequate state of road infrastructure in Malawi has hindered economic growth, connectivity, and social well-being. The existing road funding model faces challenges in generating sufficient funds for infrastructure development, maintenance, and rehabilitation. This study seeks to address these challenges and provide insights for a more effective and sustainable road financing approach. Methodology: A comprehensive mixed-methods approach was employed, combining qualitative and quantitative research techniques. Stakeholder perceptions were collected through surveys and interviews to assess the current road conditions and funding model’s performance. Budgetary evaluations and expert interviews were utilized to analyze the financial dynamics and governance aspects of road infrastructure financing in Malawi. Results: The evaluation of the road funding model highlighted a significant perception gap between desired and actual infrastructure quality, with stakeholders rating road conditions as poor. The research projected a substantial funding shortfall of US$3.5 Billion by 2037, equivalent to 28% of Malawi’s GDP, due to growing demand and inadequate financing. Despite efficient revenue collection mechanisms, the model struggled to meet infrastructure development needs. Given the critical findings of this study, the study recommends the integration of Public – Private Partnership (PPPs) to leverage private investment thereby reducing the fiscal burden on the government. Additionally, introducing a dedicated road fund sourced from multiple revenue streams such as fuel taxes, road tolls, and international donor funds could diversify and stabilize funding sources. A governance oversight committee comprising financial experts, policymakers, and community representatives should be instituted to ensure transparency and effectiveness in fund allocation and utilization

The Federal Inland Revenue Service (FIRS), Tax Compliance and the Fight Against Corruption in Nigeria

Purpose: The study seeks to investigate has the FIRS done to improve tax compliance and understand the effects of FIRS reforms had on tax compliance and the fight against corruption in Nigeria's tax system. Theoretical Framework: This study is situated within the context of Institutional Theory. The Federal Inland Revenue Service is a government institution saddled with the responsibility of collecting government internally generated revenue in Nigeria. Design/Methodology/Approach: The design of the study is descriptive and historical research design. Data for this study were collected from secondary sources like textbooks, journal articles and internet sources while content analysis was used to analyse the data collected. Findings: The findings of this study shows that FIRS has ratified a number of international agreements, including the Global Forum on Transparency and agreements to prevent double taxation. Additionally, it has established Base Erosion and Profit Shifting (BEPS), Exchange of Information, and started the tax amnesty. The FIRS has inter-agency relationships with governmental organisations including the EFCC and ICPC, among others. In addition, the FIRS's efforts have resulted in a surge in annual tax payments; in 2018, it collected N5,320 trillion, the most in its history since the FIRS was founded. Additionally, the FIRS noted a decline in the cost of revenue collection from 2.6% in 2016 to 2.49% in 2017 and 2.14% in 2018. Conclusion: Federal Inland Revenue Service (FIRS) should expand its campaign to rural areas where there is little to no tax education in order to increase its enlightenment mechanisms on tax compliance. This can be done by having the FIRS educate traditional leaders on tax compliance, who will then inform the populace.

Revenue Collection and Spending Effectiveness of Nepal Government

This study examined and analyzed the revenue collection and effectiveness of spending for the period of 15 years (2005–2020) of the government of Nepal. The study employed the causal-comparative research design. For the comparison of results, it has demarcated findings before and after 2015, because the government of Nepal adopted a federal system instead of a unitary system in 2015. Where the sources of revenues are independent variables, government spending are mediating variables, and measures of effectiveness are dependent variables. Population growth moderates the relationship between revenue collection and spending. Similarly, corruption and inflation rate moderate the relationship between government spending and measure of effectiveness. The empirical data were taken from the official website of the Nepal Government and the World Bank. Three effectiveness measuring variables have appeared increasing for the study period. But employment to total population ratio has been found to decrease. Government spending has been positively related to per capita income after 2015, which was negative before that period. Government spending on health has been found positive and significant relationship with life expectancy at birth. Education expenditure has been found positively associated with the literacy rate after 2015, whereas there was a negative association before that period. The outcome of the study will be applicable to identify the areas for fiscal policy improvement to better serve its citizen.

Tax structure and its influence on the collection of tax revenues in Bolivia, Chile and Peru 2002-2022

Tax structure and its influence on the collection of tax revenues in Bolivia, Chile and Peru 2002-2022

SOCIAL BEHAVIOUR TOWARDS TAX PAYMENT: A SURVEY-BASED EVIDENCE FROM SADC COUNTRIES

Tax non-compliance and its consequences have become a subject of increasing interest in academic literature and economic forums worldwide. While most studies on this issue focus on developed countries, there is a growing trend to explore understudied developing countries. To fill this gap, we investigated tax evasion drivers in eight Southern African Development Community (SADC) countries, using the round 7 Afrobarometer survey data conducted in 2019-2020. The survey's comprehensive coverage of economic, political, and sociological questions made it one of the most extensive surveys on the continent. We used logistic regression and Empirical Bayesian estimation and found that political legitimacy significantly influences tax evasion behavior in the SADC region. Individuals residing within the SADC are more likely to engage in tax evasion activities when they perceive a lack of access to fundamental services provided by their governments or harbor doubts about the legitimacy of political institutions. Therefore, policymakers in SADC member states should prioritize reviewing and evaluating economic policies, the performance and efficiency of political institutions, and more inclusive governance. We suggest that a strong and legitimate political framework, coupled with effective service delivery, can contribute to reducing tax evasion rates and enhancing public welfare outcomes. Institutional reforms, increased transparency, accountability, and a more inclusive governance system are necessary for fostering a culture of compliance and trust, leading to improved revenue collection.

Electronic-Tax System and Revenue Generation Efficiency in Bayelsa State Internal Revenue Board

The purpose of this study was to empirically evaluate the performance of the Bayelsa State Internal Revenue Board's electronic-tax system in terms of its impact on the organisation's ability to generate tax revenue. Descriptive survey methodology was used, with questionnaires serving as the primary data collector. One hundred twenty (120) respondents from the Bayelsa State Internal Revenue Service, Audit Firms, and other prominent registered organisations filled out the questionnaire. Using descriptive statistics to examine data collected during the field survey, we were able to determine that the Bayelsa State Internal Revenue Board's e-tax system has a number of issues and inadequacies, which may have constrained the effectiveness of the agency's revenue collection efforts. Given the study's findings, it was suggested, among other things, that the government should do all in its power to develop e-tax so that it may immediately begin reaping the benefits of taxpayers' high compliance rate. In order to enable government evaluation and correct the limitations and issues encountered, there should be enough monitoring and control over the tax collection system. Additionally, essential tax information should be provided. This is especially important with regard to online payment.

Effect of Cashless Reform on Revenue Collection Performance in Kakamega County

Revenue is considered a key element for any state since the resources mobilized and collected are used to finance government projects and provide services to citizens. After the creation of Kakamega County due to devolution, Kakamega initiated revenue reforms in 2019 to mobilize its own source of revenue. Despite the reforms, the county is still facing challenges and massive deficits in revenue collection, which hinder its operation. The study specifically examined the effect of cashless reform on revenue collection performance in Kakamega County. Secondary data between the two periods was used, and the study chose descriptive, correlational, and causal comparative as the study designs. The data in this research was analyzed using both descriptive and inferential statistics. Descriptive statistics measured include mean, standard deviation, minima, and maxima. The Pearson correlation coefficient was also calculated. Pre-estimation diagnostic tests carried out in the study included unit root and Philip Perron tests for stationarity. Results indicated that after reforms, cashless reform had a moderately positive relationship with revenue collection performance (0.450). From regression analysis, model estimates after reforms were (t = 2.81, p<0.05) for cashless system reform. Post-estimation diagnostic tests carried out include the Breusch-Godfrey LM test, whose findings showed that there is no autocorrelation; the Variance Inflation Factors (VIF), which indicated that there was no multicollinearity; the Breusch-Pagan test, whose results and findings showed the error terms were homoscedastic; and finally, the Jarque-Bera test, which showed that residuals are regularly conveyed. Recommendations from the study were that Kakamega County should come up with modern ways of revenue collection. Additionally, the county should come up with a simplified and cost-effective system to enhance revenue collection. The study further recommended severe sanctions on tax evaders. The discoveries from research will be utilized by policymakers to enhance revenue collection within Kakamega County by increasing the revenues collected. Also, the findings will help the Kakamega County Revenue Agency (KCRA) staff gain insights on policy reforms within the county and their causal effect on revenue collection performance.

Tax progressivity and taxing the rich in developing countries: lessons from Latin America.

This article discusses the challenges and potential policy choices for levying progressive taxes and taxing the rich in Latin America, a region known for its high-income inequality, limited tax-collection capacity, and low share of taxes collected from personal income and wealth. Factors such as high exemption thresholds, low top marginal tax rates, and limited administrative capacity undermine the redistributive ability and revenue collection of the tax systems in the region. Moreover, the income composition for the top percentiles largely comes from capital, and the effective tax rates they face are often low due to the preferential treatment of capital income and wealth. After discussing the evidence of how the rich in Latin America respond to progressive taxes on income and wealth and changes in enforcement policy, we provide some insights on potential policy choices to tax them effectively. These may include broadening the income tax base by lowering the number of exempt and non-taxable income items and the statutory exemption thresholds, reevaluating preferential tax rates on capital income, monitoring foreign income, addressing the abuse of tax treatment by business earners, and enhancing tax administration capacity. Additionally, wealth taxes may complement the tax system with updates to property registers and scrutiny of foreign assets.

Tricycle Operation and Socio-Economic Development within Uyo Metropolis

This study examined the contribution of commercial tricycles to the socio-economic development in Uyo, Akwa Ibom State, through revenue generation to the government, employment generation for the people and the movement of economic goods within the Uyo metropolis, Akwa Ibom State. Using the survey research technique, data for the study were drawn from primary and secondary sources through the cross-sectional survey of 400 respondents from 10,500 registered Keke riders in Uyo. The study employed the economic development framework as a theoretical framework to determine how transportation activities enhance socio-economic development. It was discovered among others, that tricycle operation has generated revenue from the payment of taxes and registration fees to the State Ministry of Transport; that it has generated a lot of direct (riders) and indirect (spare parts dealers and mechanic) employment opportunities to the citizens; and that tricycle operations have aided in the movement of people, goods and services, even to the rural areas. The study recommended that apart from the State Government ensuring that revenue generated from tricycle operations is channelled to the development needs of the state, it should also effectively monitor tricycle operations to avoid illegal registration and diversion of the funds by fraudulent revenue collection agents.

Investigating the impact of prepaid meters on communal water points in Malawi: A case study of Lilongwe peri‐urban areas

AbstractIn the peri‐urban areas of Lilongwe, the capital city of Malawi, water is mostly obtained from communal points. Increased indebtedness resulted in the disconnection of more water points. This prompted the Lilongwe Water Board (LWB) to implement a new prepaid metering system to provide access to water 24 h a day and increase revenue collection. This study investigated the impact of prepaid meters on communal water points. Specifically, the impact of prepaid meters on water affordability, users' perceptions of the new system, the influence of prepaid meters on revenue collection, and the reliability of the new system were examined. A mixed‐methods approach was employed in this study. In total, 111 households were sampled. A questionnaire and focus group discussion were used to collect data. The results of the study indicated a high level of satisfaction with the new system, as 98.2% (109) of the sampled households expressed their contentment. Chi‐square was employed to check the relationship between household income and preference of the system in terms of accessibility and affordability. The p value of the chi‐square test was 0.956, indicating no significant relationship between household income and the preferred metering system. Hence, the prepaid system has proved affordable as low‐ and high‐income people are satisfied with the system, while 1.8% (2) are dissatisfied because they resist drawing water on credit. The LWB reported that the new system increased revenue collection and guaranteed residents' access to clean water. Additionally, 68.5% (76) of the households had functional hand‐washing facilities that ensured hygiene practices. The system suffers from low pressure at the water point during cloudy weather. The study recommends that the LWB consider resizing the system to ensure water access during cloudy days. In conclusion, clean water leads to good health for citizens. Generally, citizens in good health are more productive in developing a nation.