Exploring the Under Explored & Unexplored Local Own Source Revenue: A Case Study of TMA Murree

Abstract

Collection of local own source in a decentralized economy is a huge challenge for town administrations in developing countries. The resultant of which is poor service delivery and infrastructural management due to collapses of local economic conditions. Keeping in view all the worldwide developed and developing countries scenario the current study captures the ideology of collection of local own source revenue in Town Municipal Administration Murree and its effects on the local economy. This study has explored all the major sources of revenue in TMA Murree and has identified a clear relation and dependency of internal and external sources of revenue. Moreover the results obtained from comprehensive study of the 5 year budget of the TMA are quite satisfactory and in accordance with the objectives of this research. The data has been collected through structured interviews with the officials at TMA, PLGB and other relevant departments. Moreover the satisfaction level of residents with the town administration has been identified through citizen perception surveys. The satisfaction level of local residents has been observed to be very low regarding service provision of TMA. The under explored sources have been identified in accordance with the potential of the TMA for income generation. These sources are: building plan fee, rent of commercial and recreational properties, animal slaughter fee. Similarly, for unexplored local own source revenues introduction of the property tax in the form of capital gain tax and infrastructure development tax as a major part of the internal own source revenues. For external own source revenue compensation in the form of environmental degradation tax due to positive externalities of the area’s tourism capacities should also be introduced.