Implementation Status & Results Tanzania Tax Modernization Project (P100314)

Transcription

1 Public Disclosure Authorized Public Disclosure Authorized The World Bank Implementation Status & Results Tanzania Tax Modernization Project (P100314) Operation Name: Tax Modernization Project (P100314) Project Stage: Implementation Seq.No: 9 Status: ARCHIVED Last Modified : 07-Mar-2011 Country: Tanzania Approval FY: 2006 Product Line: IBRD/IDA Region: AFRICA Lending Instrument: Specific Investment Loan Implementing Agency(ies): Tanzania Revenue Authority Key s Board Approval 15-Jun-2006 Original Closing 31-Jul-2009 Planned Mid Term Review Last Archived ISR 31-May-2010 Effectiveness 28-Nov-2006 Revised Closing Actual Mid Term Review Project Development Objectives Project Development Objective (from Project Appraisal Document) The project development objective for TAP was to assist the GoT to increase tax revenues without increasing tax rates. The PDO for TMP-IDA is designed to reflect TRAs mission statement which is: "To be an effective and efficient Tax Administration, which promotes voluntary tax compliance by providing high quality service with fairness and integrity through competent and motivated staff". Has the Project Development Objective been changed since Board Approval of the Project? Yes No losure Authorized Public Disclosure Authorized Component(s) Component Name Component Cost Strategic Goal 1: Improving Revenue Collection 4.00 Strategic Goal 2: Integration of TRA Operations 6.40 Strategic Goal 3: Provision of High Quality & Customer Service 3.50 Strategic Goal 4: Promoting Tax Compliance through Fair, Equitable and Transparent application of 6.50 laws Strategic Goal 5: Improving Staff Competence, Motivation, Integrity and Accountability 6.50 Equipment 3.50 ZRB 3.20 Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Satisfactory Satisfactory Page 1 of 7

2 Overall Risk Rating Implementation Status Overview Previous Rating Current Rating Overall Implementation Progress is satisfactory although the PDO remains at marginally satisfactory. Progress has been made in the review period with regard to the implementation of the customs modernization program; this has already resulted in tangible improvements in customs clearance times. Further reduction in clearance times are to be expected as a result of the implementation of the recommendations of the Time Release Study (TRS). A number of other major initiatives included in the TRA Corporate Plan aiming at increasing the efficiency of revenue collection and facilitating taxpayer compliance have been launched and are at the implementation stage. This includes the implementation of an enterprisewide risk management system, the launch of the second large taxpayer perception survey, the installation of a forensic lab for tax investigations, and the preparatory work for establishment of an external whistleblower mechanism. Results Project Development Objective Indicators Total tax revenue collected by TRA (for domestic reveneu) as a percentage of its annual revenue target for:(i) Direct taxes(ii) Inidrect taxes Jul collection in financial year (FY) Reduce level of perceived corruption index 15.1% 24% (large tax payers) (from last ISM in April); the survey is only undertaken annually, should have info in November 2010 but it is not available. 30% Page 2 of 7

3 Average time taken to clear goods at: (a) DSM Port; and (b) Airports (a) At DSM Port: 14 daysmin.; (b) At Airports: 6 days. (a) At DSM Port: 13 days (b) At airports: 5 days a) At DSM Port: 5 days (b) At Airports: 2 days Increased percentage of taxpayers awareness on tax education programs 46% 94 60% From Large taxpayer perception survey; new survey will be done by end 2010 (every two years) Increase in percentage of written enquiries attended to within seven days Intermediate Results Indicators To be determined 100 baseline in 2006 was 46% (needs to be input) 90% Page 3 of 7

4 Average number of days to identify stop-filers (Domestic Revenue) (i) Direct taxes; (ii) Inidrect taxes (i) 14 days; (ii) 5 days (i) 14 days (ii) 5days no change; target is (i) 10 days and (ii) 5 days (Indirect has met target) (i) 10 days; (ii) 5 days (i) Number of TIN registered tax payers; (ii) Number of VAT registered taxpayers. (i) 288,680 taxpayers; (ii) 6,154 taxpayers TIN 635,756 vat 13,923 (i) 891,950 taxpayers; (ii) 17,905 taxpayers Percentage of VAT refunds made within one month (DRD) 62% 69 90% Refund payment efficiency has dropped both in LTD and DRD. In DRD the percentage of refunds made within a month now is 70.7% compared to a 90% performance last FY Page 4 of 7

5 Percentage of customs clearances made within 24 hours at: (i) DSM Port; (ii) Aiprorts (i) DSM Port 95% (ii) Airport 88% (i) DSM Port 53% (ii) Airport 87% Deterioration in customs clearances in both port and airport and well short of end of project target. It is important that TRA complete time release study. (i) 99% (ii) 97% 28-Jun-2011 Amount of previous year's arrears collected to total amount of tax arrears at beginning of the year (Domestic Revenue Dept) (i) domestic revenue (i) 116% Mar-2010 (i) 65% Average number of days to identify stop-filers (Large Taxpayers Dept) 5 days 3 No change over last ISM 3 days Page 5 of 7

6 Total revenue realized from audits as a percentage of revenue collected (domestic revenue department) 17% 5% last ISM was report as 12% but current documents indicate that it was actually 9%, (TRA Small & Medium Taxpayer Perception Survey Conducted in April 09) 10% Data on Financial Performance (as of 04-Mar-2011) Financial Agreement(s) Key s Project Loan No. Status Approval Signing Effectiveness Closing P IDA Effective 15-Jun Aug Nov-2006 Disbursements (in Millions) Project Loan No. Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P IDA Effective XDR Disbursement Graph Page 6 of 7

7 Key Decisions Regarding Implementation Revenue projections needs to be more realistic, as TRA consistently falls short and VAT refunds needs to be made on a more timely basis. Restructuring History There has been no restructuring to date. Related Projects There are no related projects. Page 7 of 7