Revenue Generation in Lagelu Local Government Area of Oyo State: A Correlate of Tax Mobilization and Utilization

Abstract

This paper examined sources of tax revenue and its utilisation in Lagelu Local Government Area of Oyo State. It further identified various bottlenecks associated with mobilising local taxes with a view to evaluating tax mobilization and utilisation in Lagelu Local Government Area of Oyo State. The study employed primary and secondary sources of data, and a sample size of 170 representing 79% of the target population. The study revealed that tax revenues of Lagelu Local Government Area are often sourced from fees and charges like fines (58.2%); right of occupancy (46.5%); motor park/market/transport (45.3%). Further, the results revealed that tax revenues are mainly utilised on personnel cost (64.7%); education (57.1%); health and medic (45.9%). Various bottlenecks associated with tax mobilisation include absence of basis utilities (88.9%); misappropriation of public fund (82.3%); high rate tax evasion (82.3%). The study concluded that tax mobilisation of the council was not optimally explored as perceived money-spinning sources of tax revenue to the local council such as tenement rate, and shops and kiosks rate were not often mobilised. Thus, it was suggested that to reduce bottlenecks in tax mobilisation, local government officers should be more transparent while adequate training should be provided for the tax collectors in order to raise tax mobilisation and utilisation.