Support tp property tax collection in Jordan - phase II

Brief/Background

Through the property tax project UNDP has pioneered a signicant range of Information and communication Technology (ICT) applications to improve the lives of
Jordanian citizens strengthen local governance and sustainable local development.
The UNDP support to the property tax has a dual role: First, it has demonstrated the
impact of ICT application on enhancing outcomes and ensures transparency, in
addition to improve revenue growth and cost reduction. Second, this project has
proved that scal decentralization is possible, attainable, and rewarding to both the
central government and local communities.

What have we accomplished so far

  • Finalized the draft law on property tax, including the development of the legal and institutional frameworkfor the implementation of a modern and institutionalized property tax system throughout the country.
  • Built the capacity of the relevant stakeholders, especially in national ministries and municipalities to manage and take lead on the implementation process to support administrative, technical and managerial skills.
  • Established Property Tax Directorate that is capable of regulating, monitoring and conducting assessments of the decentralized property tax information system.
  • Implemented awareness campaigns to improve transparency in the revenue administration as well as in the local government expenditures for public services.
  • Initiated an agreement between the Ministry of Finance and department of land property and surveys to use their GPS maps for the entire country
    for live data updated on daily basis.
  • Achieved an increase in property tax collection by 8%.
  • Upgraded the hardware and software system of the property tax department and data migration; which will increase the flow of a detailed reports and accommodation of further developments and sites on the system.

Expected outputs



  • Improve the scal capacity of local governments and enable them to nance their own development priorities through tax revenues.
  • Enhance ownership and sustainability of interventions as well as facilitating more contextual targeting of poverty reduction.
  • Build on the phase one property tax project and to devolve property tax collection to the municipal level; Phase II is directed towards increasing compliance rate, and implementing a more cost-effective system.

Who finances it?

Donor Name Amount contributed
Government of Jordan 1,710,450 USD
UNDP 420,189 USD
Overview
Status:
Active
Project Start Date:
June 2010
Estimated End Date:
January 2017
Focus Areas:
Democratic Governance
Responsible Party:
Ministry of Municipal Affairs, municipalities
Implementing Partner:
Ministry of Finance
Project Budget:
USD 4,559,000
Location:
Ministry of Finance, Amman
Highlights
  • Phase I of the project has successfully drafted a new bill on property, introduced tax computerized systems and changed the standing operating procedures in the realization and collection of tax.
  • The project was showcased in regional events and several countries in the region visited the project to seek cooperation or even investigated purchasing the system including Syria and Palestine.
  • The electronic property tax system collection has reduced the time required to close annual property tax accounts in municipalities from 3 months after the fiscal year to “One Click” and Reduced the human factor in assessing properties and collecting tax.
  • The system has increased the collection rates at municipalities in Jordan by 14.6% from 2010 to 2011.