(1)Local governments may levy, charge and collect fees and taxes, including rates, rents, royalties, stamp duties and registration and licensing fees and the fees and taxes that are specified in Schedule 7 to this Act.

(2)The taxes that local governments may levy, charge and collect shall include the following—

(3)The local government hotel tax shall be collected by the management of the hotels or lodges who shall remit the tax to the relevant local governments.

(4)The local service tax shall be spent on basic local services such as sanitation, education, health, construction and maintenance of roads in the area of jurisdiction of the local government.

(5)Schedule 7 to this Act shall apply to taxes imposed under subsection (2).

(6)Each local government shall draw up a comprehensive list of all its internal revenue sources and maintain data on total potential collectable revenues.

(7)A local government may collect fees or taxes on behalf of the Government as its agent; and where a local government acts as an agent, a portion of the funds collected shall be retained by the local government as may be agreed upon between the two parties; and any extra obligation transferred to a local government by the Government shall be fully financed by the Government.

(8)A village council may, with the approval of the subcounty council, impose a service fee in the course of execution of its functions.