Improving Revenue Collection


Improving tax collection

Economically efficiency in collection of revenue is enhanced by strategic experts that observe their professional due care in executing their activities. Managerial obligation is to monitor the efficacy of tax collectors and identifying the administrative constrains that restrain the revenue collection[ CITATION Zah12 l 1033 ]. Incentives such as designing of the short term economic sound tax policies and regulation of the body of the tax collectors shall be developed within the company strategies[ CITATION Luc09 l 1033 ]. Elbonia system of administering the employees and mode of compensation ascertains the need of improving tax collection through tax reforms that increase the performance efficiency to support the economic growth.

Contracts assignment should be considerate of the professional skills and renewal should be based on the previous efficiency in performance[ CITATION Pen06 l 1033 ]. Elbonia Government Individuals contracts should restructure its incentives by closely collecting optimal information on each tax collector with and the reward scheme for the performances[ CITATION Cha01 l 1033 ]. Compensation mechanisms should be restructured to account for the employee manipulation evaluations than enhances effective and efficient revenue collection. Remuneration incentives such as discretionary bonuses, efficiency wages, Promotions and piece rate should be employed in rewarding the tax collectors to influence their performance efficiency.

Management need to develop a contract design based in the information derived on the tax collector profile through the relative performances evaluation to renew the employee contracts[ CITATION Kir10 l 1033 ]. Inefficient employees should not be absorbed back while efficient employees should be rewarded to enhance their efficiency in collecting taxes. Employing the use of monitoring intensity principle restructures the efficiency of collecting taxes as employees will be intensively monitored hence increasing revenue collection[ CITATION Pen07 l 1033 ]. Management should also effect incentive-intensity principle which will be based on increase revenue collections captivated through additional efforts on collecting taxes and the responsiveness to the incentives. However employing the paradigms of contract design and remuneration incentive will lead to efficiency in collecting taxes hence higher revenue to Elbonia Government.

Reference List

Canice, P., 2007. The Provision of Incentives in Firms. Journal of Economic Literature , pp.37-43.

Charles M Kahn, E.C.D.S.a.J.P.Z., 2001. Performance-Based Wages in Tax Collection: The Brazilian Tax Collection Reform and Its E. Economic Journal, pp.188-205.

Loury, K., 2010. The PPLI Solution: Delivering Wealth Accumulation, Tax Efficiency, and Asset Protection Through Private Placement Life Insurance. John Wiley & Sons.

Lucian A. Bebchuk, J.M.F., 2009. Pay Without Performance: The Unfulfilled Promise of Executive Compensation. Harvard University Press.

Penelope J. Brook, S.S., 2006. Contracting for Public Services: Output-based Aid and Its Applications. World Bank Publications. p.4.

Zahid Hasnain, N.M.a.J.H.P., 2012. Performance related Pay in the Public Sector: A Review of Theory and Evidence’, World Bank. World BankPolicy Research Working Paper.