ABSTRACT
This chapter addresses some of the general issues associated with the mobilization of resources tied to particular economic activities within Bangladesh localities. Business taxes and fees are two sources that generate some small amounts of revenue but that have the potential to become more important generators of own-source revenues. Prior to the implementation of the decentralization policy, union parishads had the statutory authority to tax local businesses, but this right was transferred to the upazila parishads upon their creation. One potential revenue source for at least some rural local governments in Bangladesh is public enterprises. When taxing businesses at the local level in low-income areas there is always a conflict between finding a base for the tax that is equitable across different business and that can be administered locally. There are several good reasons for local governments in Bangladesh to rely on user fees associated with local public services.
