Mali - Benefits Extend to the Local Tax System

In Cinzana municipality in Mali, the income generated by sales to WFP from P4P-supported smallholder farmers is directly linked to increases in tax revenues. With the local government investing the extra income in social services, an entire community is benefiting indirectly from the P4P pilot.

Out of the 703 municipalities in Mali, Cinzana is the biggest one with its 72 villages. Since the start of a decentralization process in Mali in 1993, the state has transferred many responsibilities to the municipalities, including the accountability and ownership of development. In Cinzana municipality, payment of local development tax (less than US$2 per person aged from 14 to 60 years) was previously a major challenge for smallholder farmers.

Before the start of the P4P project, local tax recovery rate was about 50 to 60 percent in Cinzana municipality but now it’s about 83 to 86 percent, thanks to a better income for farmers” said Bamoussa Traoré, Mayor of Cinzana municipality. “This local tax increase is extremely important as it allows the municipality council to meet the needs of the communities by building schools and health centres in many villages”. 

Read on in the original article from WFP's P4P programme

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