Success Story: USAID-funded Tax Systems as Instruments to Increase Own Source Revenues

TAIS is a computerized system that integrates local tax information systems and provides tools for tax compliance, combating tax non-compliance, and satisfying operational, managerial, and internal management requirements. The system's functionalities cover the entire cycle of local tax administration, including taxpayer data management, tax calculation, invoicing, payments, debt identification, and revenue reporting. PLGP also provides ICT improvements, technical assistance, and on-the-job training to staff in partner municipalities on management and governance issues. The focus is on building blocks to address systemic weaknesses, improve local tax collection, and strengthen financial control and accountability. After three years of using TAIS, partner municipalities of Elbas, Kamza, Lushnja, Berat, Kuçova, Fier, Patos, Vlora, and Saranda have shown significant increases in OSRs, with an average of 94% increase from 18% to 94%. The system's effectiveness is attributed to the facilitation of reporting instruments, which simplifies work on tax administration and local tariffs. The collected taxes are expected to be returned to citizens in the form of investments. The implementation of TAIS has led to improved financial management and control, ensuring the sustainable use of local public resources. The system's integration with national tax administration and other central government agencies has also contributed to its success. The PLGP's efforts aim to strengthen the capacity of LGUs in managing their own resources, promoting transparency, accountability, and transparency in local governance. The Director of Local Tariffs and Taxes at the Municipality of Elbas, Aida Sara, has expressed satisfaction with the system, stating that the familiarization with reporting instruments has facilitated their work on tax administration and local tariffs. The success of TAIS demonstrates the potential of computerized systems in improving tax administration and local governance.