Paper long abstract:

The 2003 decentralisation process in Benin places the newly elected councillors in the position of designing and implementing local development. In the absence of sufficient means from central government, the councillors are pushed to mobilise as much local resources as possible to finance the municipal development. Revenues from markets are important because they represent between 15 and 30% of the municipalities income.

The research is about the municipalities of Dogbo and Aplahoué in the South-West of Bénin. How is it possible that Dogbo improved its market income from 9 million Fcfa (656 Fcfa = 1€) in 2002 to 14 million in 2004 while Aplahoué could augment from 15 to 77 million Fcfa? Apparently, local authorities can and do make different choices when it comes to taxing. Otherwise, how can one understand that in two comparable markets the amount collected is so different?

An analysis based on survey data of a sample of taxpayers and tax collectors, completed with a study of qualitative data collected on the two local authorities, revealed two major conclusions:

- determination and leadership in identifying revenues sources, control and rigor in collecting taxes, concern for equity, a good organisation in the tax collection, added to a good level of motivation among tax collectors helps guarantee an effective tax mobilisation;

- ethnicity is a constraining force as some citizens claim tax exemption because they belong to a certain ethnic group. When the authorities have no clear answer, this reduces the effectiveness of tax collection and will reduce the amount collected.