The Crucial Role of Politics and Institutions in Property Tax Administration and Reform

This paper examines how shortcomings in the property tax legislation in Malawi and the political interplay among key stakeholders—namely the central government, local councils, and third parties—shape the ability of the cities of Lilongwe, Mzuzu, Zomba, and Blantyre to fully realize the revenue potential of property taxation. The paper delves into the challenges posed by weak administrative capacity and low tax compliance, both intensified and complicated by the existing institutional structures and political dynamics. Overall, the study explores the complex link between institutional and political factors in Malawi, shedding light on the factors driving the prospects for property tax reform.

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