Effective Taxation of Informal Sector through Local Community Partnership
By and large, as citizens begin to see value for money, the burden of enforcement becomes lighter. People will pay taxes when they see the good use that tax revenues are put to. Encouraging tax compliance demands not only lowering costs but also strengthening the potential benefits of formalisation, from increased security to new economic opportunities. It has been said that the first level of fiscal responsibility of any citizen is to pay tax. Citizens have legitimate right to demand accountability and good governance when they pay tax no matter how small. Revenues from taxes paid by citizens are more likely to be put to proper use when citizens ask questions about the way and manner the money is spent. Integrating citizens in new systems evolved to grow taxes in partnership with community associations is also crucial. This will stand in contrast to the easy money derived from oil revenues, which is seen in the popular consciousness as a "national cake" and often not earmarked properly and accounted for. Most crucially, a community taxation emphasis will bring citizens centrally into governance and better empower them to demand and monitor accountability.