Public Disclosure Authorized Public Disclosure Authorized The World Bank Implementation Status & Results Tajikistan Tax Administration (P127807) Operation Name: Tax Administration (P127807) Project Stage: Implementation Seq.No: 2 Status: ARCHIVED Archive : 01-Nov-2013 Country: Tajikistan Approval FY: 2013 Product Line: IBRD/IDA Region: EUROPE AND CENTRAL ASIA Lending Instrument: Specific Investment Loan Implementing Agency(ies): Tax Committee, Ministry of Finance Key s Board Approval 31-Oct-2012 Original Closing Planned Mid Term Review 30-Jun-2015 Last Archived ISR 23-May-2013 Effectiveness 08-Feb-2013 Revised Closing Actual Mid Term Review Project Development Objectives Project Development Objective (from Project Appraisal Document) The Project Development Objective (PDO) is to reform the tax administration to become more efficient and effective in collecting revenue, enhance the level of voluntary compliance, and improve the quality of taxpayer services. Specifically, the project aims to: (i) reduce the administrative cost of collecting revenue to make the Tax Committee a more efficient institution; (ii) strengthen theeffectiveness of the Tax Committee to fight tax evasion and reduce the size of the shadow economy; (iii) reduce contact between taxofficials and taxpayers to reduce avenues for corruption and create conditions for increased level of voluntary compliance; and (iv) provide good quality taxpayer services that would help reduce the compliance burden for taxpayers, thus improving the business environment and competitiveness. Has the Project Development Objective been changed since Board Approval of the Project? losure Authorized Public Disclosure Authorized Yes No Component(s) Component Name Component Cost Institutional development 2.20 Operational development 1.80 IT Infrastructure and system development 12.40 Project Management 1.60 Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Satisfactory Satisfactory Overall Risk Rating Moderate Moderate Implementation Status Overview Page 1 of 5
The project became effective as of February 8, 2013. The Government reiterated its strong commitment to tax reforms. Good progress has been made in project implementation. A PIU is in place with consultants assisting and providing knowledge transfer to PIU staff. To improve coordination of tax reform and monitor progress, the government has created a Project Coordination Council (PCC) which includes officials from TC, MoF, MEDT, SIC and business associations. TC has established three thematic working groups on institutional development, operational changes, and IT modernization, which will lead the reforms in their respective areas. The TC has approved an IT Development Plan that identifies the key functions that need to be automated and defines the technical environment that the TC systems will exist within. Risk based audit selection has been initiated. Locations No Location data has been entered Results Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target Increase in Voluntary Compliance Number Value 161000.00 201500.00 30-Jun-2012 Total number of active taxpayer firms + number of active individual taxpayers Annual indicator. Not due yet. Improved taxpayer service Hours Value 226.00 224.00 180.00 01-Jun-2013 Improved Taxpayer Service Text Sub Type Supplemental Average time to comply based on Doing Business Indicator Improvement shown in Doing Business Report 2013 Value None Survey due in January 2014 Improvement Increased Efficiency Text Value TJS 2.1 million TJS 2.1 million TJS 2.9 million Average tax revenue collected per tax official Annual indicator. Not due yet. Enhanced Effectiveness Number Value 0.37 0.37 0.42 30-Jan-2015 VAT productivity Mid-term indicator. Not due until 2015. Enhanced Effectiveness Number Value 0.03 0.03 0.06 Page 2 of 5
Sub Type Supplemental Adjustment as a result of audit per auditor Number Value 184.00 193.00 280.00 31-Dec-2011 30-Dec-2017 Intermediate Results Indicators Indicator Name Core Unit of Measure Baseline Current End Target Component 1 Text Value No HRIS available Not due yet System fully operational 05-Sep-2012 30-Sep-2013 31-Dec-2016 Component 1 Text Value Training center not present Not due yet. Sites selected for Training center fully equipped training and being refurbished with government's own funds. 05-Sep-2012 30-Sep-2013 31-Jan-2015 Component 1 Text Value Training provided in ad hoc manner Not due yet. Advertisement for EOI on training have been sent out by TC. Training strategy and curriculum design developed 05-Sep-2012 30-Sep-2013 31-Dec-2015 Component 1 Text Value Organizational plan for HQ TOR for organizational review Organizational review, submitted to government has been cleared and EOI advertized. workforce review, organizational restructuring and staff redeployment completed 05-Sep-2012 30-Sep-2013 31-Dec-2016 Component 2 Percentage Value 13.80 13.00 10.00 Amount of arrears as a percentage of total annual tax collection (excluding Barki Tojik) Due in January 2014 after one year of project Component 2 Percentage Value 48.00 50.00 60.00 Page 3 of 5
Share of revenue collection Due after one year of project. from LTI Component 2 Percentage Value 0.05 25.00 70.00 Percentage of VAT taxpayers filing electronically is insignificant By January 2014, it is expected that 25% of VAT taxpayers will file electronically Component 2 Text Value Manual system available Not yet due Call center operational 05-Sep-2012 30-Sep-2013 31-Dec-2014 Development of call center Component 3 Text Value Supports current legacy Data center not due yet. Data center fully operational system 05-Sep-2012 30-Sep-2013 Some servers to take care of increased capacity needs are being provided by the project until the main data center is available. 30-Sep-2017 Component 3 Text Value Existing tax system has limited capacity 05-Sep-2012 Study tours for visiting countries with ITMS Will be conducted by the end of 2014. ITMS deployed and fully operational 31-Dec-2016 Data on Financial Performance (as of 23-Aug-2013) Financial Agreement(s) Key s Project Ln/Cr/Tf Status Approval Signing Effectiveness Original Closing Revised Closing P127807 IDA-H8100 Effective 31-Oct-2012 14-Nov-2012 08-Feb-2013 Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P127807 IDA-H8100 Effective XDR 11.90 11.90 0.00 0.86 11.04 7.00 Disbursement Graph Page 4 of 5
Key Decisions Regarding Implementation The project was launched in February 2013. E-filing has been expanded from the initial 50 taxpayers to 1017 with ongoing active enrollment. The TC is reporting a take-up rate of approximately 10 15 new registrants for the e- file service per week. When a taxpayer subscribes to e-file, they e-file returns for all their taxes. The expansion of this service is an important development in the TC modernization. Restructuring History There has been no restructuring to date. Related Projects There are no related projects. Page 5 of 5