1) Property Tax: Local authorities in Ethiopia generate revenue through property tax, which is levied on residential, commercial, and industrial properties. This tax is a significant source of revenue for local governments to fund various infrastructure projects and public services.
2) Business Licensing Fees: Local authorities in Ethiopia also collect revenue through business licensing fees. These fees are imposed on businesses and enterprises operating within the jurisdiction of the local authority. The amount of the fee typically varies based on the type and size of the business, and it contributes to the local authority's revenue stream.
3) Land Lease Fees: Local authorities generate revenue by leasing out public land or government-owned properties to individuals or businesses. Land lease fees are charged on a periodic basis, allowing the local authority to earn revenue from land resources. These fees can be a significant source of income, especially in urban areas where land is in high demand.
4) Market Fees: Local authorities in Ethiopia often operate and manage local markets where traders and vendors sell their goods and services. These local markets generate revenue through the collection of various fees, such as rental fees for stalls or kiosks, parking fees, and other charges. The income generated from these market fees helps support the maintenance and operation of the market and contributes to the local authority's revenue pool.
Highlight four source of revenue for the local authority in Ethiopia.
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