Deadline: 30-Sep-22
The United Nations Development Programme is accepting proposals for Preparation of Revenue Improvement Action Plans (RIAPs) for Local Governments of 6 pilot municipalities.
The objective of this assignment is to support the preparation of Revenue Improvement Action Plan (RIAP) for selected municipalities in which a comprehensive package of support is being provided. The services of a consulting firm are sought to support respective municipalities to prepare RIAP adopting various methodologies.
The consulting firm will provide orientation to concerned stakeholders and elected representatives on the importance of RIAP and support the process of identifying new areas of tax potential, provide options for fixation of tax rates, offer recommendations on reducing revenue leakages and to establish the database of taxpayers. By the end of assignment, all municipalities will have their own individual RIAP indicating a bigger picture of existing revenue status and prospects for future
Objectives
- Objective of the assignment:
- Provide an orientation on revenue improvement activities to the rural/municipal representatives (Mayor, Deputy Mayor, Chair, Vice Chair and ward chairpersons), members of Revenue Advisory Committee, section heads and staff involved in revenue administration.
- Review, analyse and document the past trend of OSR collected by municipalities and rural municipalities;
- Detailed analysis of key capacity gaps and its’ underlying causes to increase OSR by potential source of revenue such as Property Tax, business tax, rental tax, license fee, construction design approval fee, recommendation fees and use of natural resources etc.
- Trend analysis of the OSR contribution10 in annual budget of municipality
- Trend analysis of the OSR contribution in the annual capital development budget of municipality
- Institutional analysis of organogram, collection and billing system and internal control of revenue administration
- In coordination with respective municipalities support and prepare individual RIAPs of selected 8 municipalities/rural municipalities by potential source of OSR including the revenue improvement strategies.
- Explore new sources of potential revenues which are not yet in practice by municipalities and identify potential of non-tax revenues.
- Identify key capacity gaps in the area of OSR and provide recommendations (both immediate and long term)
- A synthesis review on collection of OSR against the revenue potential, underlying causes and the way forward.
Areas
- The preparation of the RIAP should be in accordance with guidelines prepared by MoFAGA, and should cover but not be limited to the following key areas:
- Introductory Features of the LG
- Trend analysis on collection of own OSR and its coverage, collection mechanisms and underlying causes of low revenue collection.
- Trend analysis of OSR contribution to annual municipality budget and annual capital development budget
- Explaining the average growth rate; the formula used to calculate growth rate and causes for increasing or decreasing the OSR
- Cost analysis for collection of different forms of tax and non-tax revenue
- Revenue administration capacity of municipality, identify strengths and area for improvements
- Functional Status of Revenue Advisory Committee
- Methodologies for identifying tax potential, increasing tax coverage and Institutional and management dimensions for implementing RIAP for next three years
- Analysis and recommendations for different strategies to raise own source revenue at optimum level at least for three FY to five years Include projection for at least three years
- Recommendations for optimum use of municipality existing assets, natural resources (without having negative environmental affect) to raise own source revenue including potential for building Public Private Partnership
- Effective implementation of the action plans
- The review should also include indicators capturing actions to improve own source revenue of the local government in the medium-term expenditure frameworks
Criteria
This assignment will be provided to individual company/firm that has related expertise and experience, competent human resources, management capacity and committed to deliver products on time. The methodology, CVs of key personnel involved to prepare RIAP will carry high importance.
Qualification and Experience
- Minimum Bachelor’s degree in Business Administration, Business Studies, Economics, Local Governance, Public Administration, development finance and any other relevant field.
- Minimum five years of work experience on LGs planning and financial management, taxation, revenue trainings, experience in LBs financial management framework
- Experience in data collection, analysis and report preparation
- Experience in managing training program and facilitating skill
- Proficient in written and spoken Nepali and English language
Key Responsibilities
- Under the overall guidance from the Local Governance the Revenue Mobilization Expert, all consultants are required to work closely with municipality officials and should be available immediately to complete the assignment within the given time frame.
- The consultants are required to encourage municipal officials including elected authorities for their active participation during the entire RIAP process.
For more information, visit https://procurement-notices.undp.org/view_notice.cfm?notice_id=95685