Local authorities can improve revenue collection in low-income communities by first empowering these communities to generate more income. This can be achieved through skill development programs, support for small businesses, and creating job opportunities tailored to local needs. When the economic capacity of residents improves, their ability and willingness to contribute to local revenue also increases. Therefore, the focus should not solely be on collection but on enabling income growth—because sustainable revenue generation is directly linked to the community’s financial stability and economic empowerment.

I hope I understand your question and request.

First, tax revenues collections in low income communities should not be different from general tax collections from well-doing social groups.

In general, taxes are deducted upfront from the income or payDr. check of the individual before he or her receives the income. Such transactions do not require a bank account deposit and can be completed with cash or money order or Western Union, Moneygram or similar institutions..

Second, in the case of micro lending, I would recommend you to take a look at the work of Nobel Prize winner Dr Mohammed Yunus has done on micro loans in Bangladesh. Here is a description below:

Muhammad Yunus and Grameen Bank were awarded the Nobel Peace Prize for 2006 for their work to “create economic and social development from below”. Grameen Bank's objective since its establishment in 1983 has been to grant poor people small loans on easy terms - so-called micro-credit - and Yunus was the bank's founder.

Any tax and loan interests due can easily be collected upfront or throughout the lending process. However, despite of providing access to capital to these micro businesses, micro loans are very expensive. Interests charged are often above 30%, and are only meant for short-term borrowing and not be suitable for paying taxes, unless the borrower can establish (within a year) a profitable business that justifies such lending.

Third, if these communities practice "peer to peer" investments such as tontines, as it is the case for example in many poor communities in Africa, taxes can be collected throughout the rotation of the tontine provided the participants of the tontines are using pre tax revenues for their investments. To prevent "cheating" tontines are run today the a software that enable service and other fees can be collected upfront from the individual who collects the aggregated tontine sum.

You can help setup and run such automated tontines in these communities. You may also read more about tontines through a small online research.

Ignace