GovTech Challenges

Digital solutions to improve local toll administration

Druskininkai Municipality Administration is looking for a solution to create a modern, efficient, attractive and accessible local toll administration system that will help taxpayers to conveniently declare and pay the local toll tax.

Context

  • Since 2011, by decision of the Druskininkai Municipal Council, a local toll fee has been levied on guests using the public tourism and recreation infrastructure of the Druskininkai resort for the use of accommodation services. The collection of the local toll from the users of the accommodation service is the responsibility of the accommodation service providers of the resort. It is payable by the guest to the accommodation provider as an additional charge and is not included in the room rate.
  • The current information system used for the administration of the local charge does not ensure efficient administration of the local charge and creates the conditions for a shadow economy. It is cumbersome, outdated and time-consuming, both for the payers of the local charge and for the professionals of the municipality administering the local charge.
  • The local tax payer has to collect the data on guest arrivals in their own data recording system or software and manually transfer it to the declaration at the end of the month, fill in the other required fields and, based on the data provided, make a payment to the municipality’s bank account. For the professionals administering the local tax, the current system is inefficient and time-consuming.

Solution

  • An innovative digital solution is needed to create a modern, efficient, attractive and accessible local toll administration system that will allow taxpayers to conveniently (by synchronising the relevant data from different systems) declare and pay their local toll tax.
  • The automation and synchronisation of many processes would enable local tax administrators to do their work more accurately, quickly and efficiently. It would provide up-to-date data on arrivals and departures of accommodation users, contribute to curbing the informal economy in the accommodation sector, create a fair playing field and promote fair business.

Prizes for participants

Prizes will be awarded to the first, second and third place winners:

  • 1st prize – 11 000 EUR
  • 2nd prize – 5 500 EUR
  • 3rd prize – 3 300 EUR

Additional information

The deadline for receipt of projects or applications for participation is 13 September 2021, 10:00.

For a detailed description of the challenge and the call for projects, please visit the Central Public Procurement System (CVP IS).

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