would be MT 256.2 million, which, on average provides a gain of MT 85.4 million per annum. Out of this, municipals would retain an amount close to MT 8.54 million.

##### NIGERIA

In 2018, Nigeria attempted to double property tax rates in Lagos but faced a backlash from the public who demanded a reversal of the policy. To some extent, this shows that the property tax base is very narrow as few taxpayers are complying with property taxes. What Nigeria would look to as progressive means of raising property taxes would be to increase the tax base by expanding the property register or improving valuation methods to provide for a truly reflective value of property tax. This could include adoption of the point-based system of valuation and regulation of the valuation market. Both reforms could be implemented under the REMOP programme and it could have great potential for boosting property tax revenues. In the country report for Nigeria, IMF (2019) estimates that if Nigeria would implement property tax reform, the reform is likely to generate revenues amounting to 0.5 percent of GDP for the period 2018-2020. Thus, the REMOP would likely generate more considering the comprehensive nature of its implementation.

##### Procedure for Estimating Potential Revenue from Property Taxes Assumptions

We make the following assumptions in the computation of property tax in the three countries:

- • 24 The average household size in Nigeria is 5.0 persons , in Mozambique it is 5.1 persons , • 24 The average household size in Nigeria is 5.0 persons , in Mozambique it is 5.1 persons , 25 and in Malawi it is 4.5 persons .
- • assume that the urban population is indicative of the size of the urban properties. The • assume that the urban population is indicative of the size of the urban properties. The estimate may further be enhanced by focusing only on percentage of households with access to electricity. This indicator extends to rural households with electricity as more likely to be in the tax net in as far as property tax is concerned. This carters for the challenge of setting a threshold to exclude disadvantaged households.
- • the population with electricity access by average household size, we obtain the • the population with electricity access by average household size, we obtain the estimate of number of properties in each of the three countries.
- • assume that commercial properties make up 10 percent of the residential properties and • assume that commercial properties make up 10 percent of the residential properties and their average assessed value is 3 times the value of residential properties in the City Centre.
- • use the following tax rates for properties: • use the following tax rates for properties:
- o For purposes of this exercise, we assumed a rate of 0.4% of real estate o For purposes of this exercise, we assumed a rate of 0.4% of real estate assessed value.
- o : Municipal real estate tax rates are as follows: (i) 0.4% for real estate with o : Municipal real estate tax rates are as follows: (i) 0.4% for real estate with residential purposes; and (ii) 0.7% for real estate with commercial, industrial or independent professional activities, amongst other purposes.
- o As a guide only, commercial and residential owner-occupied properties attract o As a guide only, commercial and residential owner-occupied properties attract an annual property Land Use Charge Rate of 0.394% of the assessed value of the property; new owner-occupier/individual properties are assessed at an annual land use charge rate of 0.132% of the assessed value of the property.

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