Purpose: The BRICS states are based on multi-level government’s architecture whose megacities have an outstanding role in their respective states – not only in terms of population and in terms of economic power, but also in terms of local own-tax revenue collection, which, in turn, implies a very strong administration. At the same time, megacities are facing increasing public expenditures because of infrastructure needs, housing shortage, growth of social inequality, and environmental degradation. In order to outweigh the urban advantages associated with urbanization, reconsidering the fiscal framework is of urgent need. The paper aims to discuss these issues. Design/methodology/approach: Most similar case design is applied. Findings: Megacities are at the forefront of national economic growth, that they have an above average tax base, an excellent administration, and therefore, face above average yields of property tax revenues. Rethinking the fiscal framework could considerably improve local finances. Research limitations/implications: Due to limitations on public finance statistics, the sample draws on four megacities in BRICS, in reference to all megacities, only. Practical implications: In context of Habitat III, New Urban Agenda, the practical implications are manyfold: the paper focuses on megacities, its finances (financing for development), and social implications involved. Social implications: Local public finance, especially property taxation, has many implications on social level. Originality/value: The paper is one in a kind.
