Reforming Self-Declaration Property Tax Systems: Illustrations from Rwanda

A subset of countries in Africa – such as Rwanda – operate a self-declaration property tax system, under which property owners are obligated to declare their properties and values on an annual basis. While this approach can reduce the government’s administrative burden, it can lead to revenue underperformance and inequity, as many taxpayers either fail to declare or under-declare property values. To help address these challenges, governments can either: (1) strengthen the self-declaration system, through more frequent audits, or the construction of a comparative dataset of property values using computer-assisted mass appraisal (CAMA); or (2) transition towards an administrative assessment system where the government is responsible for identifying and valuing all properties for tax purposes. Each avenue for reform carries different advantages and disadvantages in terms of cost, accuracy, and complexity. The policy option ultimately pursued should reflect the government's political will and financial resources.