REAL PROPERTY TAX ADMINISTRATION

Evaluation covers the period 5/78-3/81 and is based on an audit of files and field visits. The project is seriously behind schedule and its viability is in question. This has been due to half-hearted Government of the Philippines (GOP) support; disputes over ministerial jusidiction (delaying vital commodities in customs for up to 9 months); and local sensitivities regarding increased tax collections. Seed monies provided to the communities do not appear to have been used for new tax mapping efforts. Revenue increases as have occurred seem to be due to prior mapping efforts. Moreover, mapping costs were not carefully analyzed at the project"s design and early implementation stages. Without increased GOP support and a USAID redesign effort, the project should be terminated. The following recommendations are made: Project responsibility should be shifted from the Ministry for Local Government and Community Development (MLGCD) to a more suitable GOP entity. The GOP must verify what work, if any, has been completed in beneficiary localities and more specific guidelines must be applied before further funding is released. Both the GOP and USAID should draft criteria for the types of commodities and services to be funded and create pilot units to test the project"s replicability. The MLGCD should implement a commodities distribution policy to meet local needs and minimize duplication. USAID should seek immediate resolution of the customs issue, making sure that monies paid by the GOP have been reimbursed, and that tax exemptions or budget allocations for commodities are available in the future. Project redesign should include a technical assistance component to address key issues such as procedural disincentives to local property tax revenue generation and to provide monitoring/evaluation and more detailed cost estimates based on experience. USAID should make a comprehensive evaluation of the project if it is continued, examining quantitative data and distinguishing the project from past projects.