The World Bank Implementation Status & Results Report Tax Administration (P127807) Tax Administration (P127807) EUROPE AND CENTRAL ASIA | Tajikistan | Governance Global Practice | IBRD/IDA | Investment Project Financing | FY 2013 | Seq No: 14 | ARCHIVED on 21-May-2019 | ISR36964 | Implementing Agencies: Tax Committee, Ministry of Finance, Ministry of Finance Key Dates Key Project Dates Bank Approval Date: 31-Oct-2012 Effectiveness Date: 08-Feb-2013 Planned Mid Term Review Date: 30-Jun-2015 Actual Mid-Term Review Date: 04-Nov-2014 Original Closing Date: 31-Dec-2017 Revised Closing Date: 31-Dec-2019 pdoTable 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 Objective? No Components Table Name Institutional development:(Cost $2.20 M) Operational development:(Cost $1.80 M) IT Infrastructure and system development:(Cost $12.40 M) Project Management:(Cost $1.60 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Satisfactory Overall Risk Rating Substantial Substantial Implementation Status and Key Decisions Overall, the project continues to make good progress in achieving desired outcomes. Generally, all the results indicators show that they are over achieved as the Tax Committee (TC) implements recommendations from the project TA activities and those provided by the Bank team. Presently, implementation of the ITMIS (the largest procurement item under the project) is underway which has committed most of the outstanding 5/21/2019 Page 1 of 8 The World Bank Implementation Status & Results Report Tax Administration (P127807) project funds for payout over the remaining life of the project. The reform commitment of the management of the TC remains strong as evidenced by the project’s results indicators. Component 1. Institutional development Human Resources Management Information System (HRMIS). After the successful launch of the new HRMIS system in September 2017 and loading historical information into it; the system became operational in all offices on January 1, 2019. Take-up is reported to be excellent and the field office staff have made a number of suggestions for further enhancements that are being reviewed and prioritized for an upcoming release by IT staff, who have been certified in the software. Component 2. Operational Development A number of the reports required under this component have been delivered by consultants. Reports include analysis and recommendations for changes in the areas of tax policy analysis and revenue forecasting, internal audit and appeal, and taxpayer services. With respect to tax policy activities, the MOF is responsible for implementing the recommendations on revenue forecasting, impact assessment and tax policy formulation. With respect to the consultant’s reports on improving taxpayers’ registration, tax audit, and enforced collection, these were not approved by TC. Accordingly, the TC terminated the contract and instead is finalizing selection of an individual consultant to complete the analysis and provide recommendations on changes on those important areas of tax administration. Component 3. IT Infrastructure Modernization The TC continues to expand its electronic service offerings providing an increasing electronic suite of services as an interim solution until the new ITMIS is introduced as part of this project. The TC is now offering 24 electronic services (up from 17 in April 2018). Point-of Sale terminals (POST) for payment of taxes are being introduced to make it easier for taxpayers to pay their tax – the delay related to licensing issues reported previously has been resolved and the TC expects to deploy these devices before October 2019. The ITMIS implementation is ahead of schedule. Following the contract award of the retendered ITMIS on June 28th, 2018, implementation has been satisfactory. The TC has been working closely with the successful bidder and delivered the first phase into production two months earlier than planned in the inception report as a result of the strong commitment and intensive involvement from both the business and IT staff. The TC remains extremely vigilant in monitoring progress and responding to vendor requests for information during the customization phase. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance -- Substantial Substantial Macroeconomic -- High High Sector Strategies and Policies -- Substantial Substantial Technical Design of Project or Program -- Moderate Moderate Institutional Capacity for Implementation and Sustainability -- Substantial Substantial Fiduciary -- Substantial Substantial Environment and Social -- Low Low Stakeholders -- Substantial Substantial Other -- Substantial Substantial Overall -- Substantial Substantial Results PDO Indicators by Objectives / Outcomes 5/21/2019 Page 2 of 8 The World Bank Implementation Status & Results Report Tax Administration (P127807) Increase the level of voluntary compliance IN00700020 ►Increase in Voluntary Compliance: the total number of active taxpayers (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 161,000.00 312,623.00 315,890.00 201,500.00 Date 01-Jan-2013 07-Nov-2018 01-Apr-2019 31-Dec-2019 More effective and efficient tax administration in revenue collection IN00700106 ►Increased efficiency: average tax collected per tax inspector (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value TJS 2.1 million TJS 5.3 million TJS 5.7 million TJS 2.9 million Date 01-Jan-2013 07-Nov-2018 01-Apr-2019 31-Dec-2019 IN00700108 ►Amount of tax arrears as a percentage of total annual tax collection (excluding Barqi Tojik) (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 13.80 6.90 6.20 10.00 Date 01-Jan-2013 07-Nov-2018 01-Apr-2019 31-Dec-2019 IN00700110 ►Share of revenue collected by the Large Taxpayer Inspectorate (LTI) (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 43.60 58.80 58.80 60.00 Date 01-Jan-2013 07-Nov-2018 01-Apr-2019 31-Dec-2019 Total data includes taxes collected by LTI and MTI Comments: IN00700111 ►Adjustment as a result of audit per auditor (Somoni millions) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 184.00 712.00 734.30 280.00 Date 01-Jan-2013 07-Nov-2018 01-Apr-2019 31-Dec-2019 IN00700112 ►Enhanced effectiveness: tax gap as measured by VAT productivity (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.37 0.39 0.35 0.42 5/21/2019 Page 3 of 8 The World Bank Implementation Status & Results Report Tax Administration (P127807) Date 01-Jan-2013 07-Nov-2018 01-Apr-2019 31-Dec-2019 Tax gap unit of measure is coefficient Comments: IN00700113 ►Enhanced effectiveness: tax gap as measured by CIT productivity (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.03 0.04 0.02 0.06 Date 01-Jan-2013 07-Nov-2018 01-Apr-2019 31-Dec-2019 Tax gap unit of measure is coefficient Comments: Improved quality of taxpayers services IN00700107 ►% of taxpayers legal entities filing electronically (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 98.90 98.90 70.00 Date 01-Jan-2013 07-Nov-2018 01-Apr-2019 31-Dec-2019 IN00700109 ►Improved taxpayer service: average time to comply (Hours, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 226.00 209.00 209.00 180.00 Date 01-Jan-2013 07-Nov-2018 01-Apr-2019 31-Dec-2019 Intermediate Results Indicators by Components Institutional development IN00700114 ►Component 1: Implementation of Human Resourse Management Information System (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target After the successful launch of the new HRMIS system in September 2017 and HRMIS has been loading historical developed. 90% of data information into it; the has been introduced into system became System fully Value No HRMIS available the data base. The operational in all operational system will be offices on January 1, implemenetd from 2019. Take-up is January 1, 2019 reported to be excellent and the field office staff have made a number of 5/21/2019 Page 4 of 8 The World Bank Implementation Status & Results Report Tax Administration (P127807) suggestions for further enhancements that are being reviewed and prioritized for an upcoming release by IT staff, who have been certified in the software. Date 01-Jan-2013 07-Nov-2018 01-Apr-2019 01-Jan-2019 IN00700117 ►Component 1: Building training facilities (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Training Centers in Training Centers in Training Center not Khujand, Kulob, Khorog Khujand, Kulob, Training center fully Value present and Bokhtar are built and Khorog and Bokhtar equipped equipped. are built and equipped. Date 01-Jan-2013 07-Nov-2018 01-Apr-2019 31-Dec-2018 IN00700120 ►Component 1: Training Strategy approved and implemented (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Training strategy and Training provided in ad Training Strategy is being Training Strategy is Value curriculum design hoc manner finalized. being implemented. deveped Date 01-Jan-2013 07-Nov-2018 01-Apr-2019 28-Jun-2019 IN00700122 ►Component 1: Organizational review, work force review, organizational restructuring, staff redeployment (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Organizational review, New organizational New organizational workforce review, Organizational plan for structure of HQ was structure of HQ was organizational Value HQ submitted to approved, work force approved, work force restructuring and staff government reviewed and staff reviewed and staff redeployment redeployed redeployed completed Date 01-Jan-2013 07-Nov-2018 01-Apr-2019 30-Dec-2016 Operational development IN00700115 ►Component 2: Development of Call Center (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Call Center with up to ten Funding was provided seats is established and to set-up a modern equipped. Up to 10,000 contact center with up calls were responded in to ten seats in the old 2017. Over one thousand training building and Call Center Value Manual system available sample questions and was operational, as operational answers (FAQs) have planned, in January been constructed for use 2018. Use of the by the Call Center staff. contact center The Central Call Center continues to expand is linked to two other with the number of 5/21/2019 Page 5 of 8 The World Bank Implementation Status & Results Report Tax Administration (P127807) satellite contact centers calls exceeding 30,000 in the regions. in 2018. Continued fine tuning of the operation is underway based upon the analysis of the queries that the contact center is handling. Date 01-Jan-2013 07-Nov-2018 01-Apr-2019 31-Dec-2018 IN00700118 ►Component 2: Amount of tax arrears as a percentage of total annual tax collection (excluding Barqi Tojik) (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 13.80 6.90 6.20 10.00 Date 01-Jan-2013 07-Nov-2018 01-Apr-2019 31-Dec-2019 IN00700121 ►Component 2: Share of revenue collected by Large Taxpayers Inspectorate (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 43.60 58.80 58.80 60.00 Date 01-Jan-2013 07-Nov-2018 01-Apr-2019 31-Dec-2019 IN00700123 ►Component 3: Percent of taxpayers legal entities filing electronically (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 98.90 98.90 70.00 Date 01-Jan-2013 07-Nov-2018 01-Apr-2019 31-Dec-2019 IT Infrastructure and system development IN00700116 ►Component 3: Data Center established (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target The new Data Center The new Data Center became operational in became operational in 2016 and all 2016 and all production production services services are now hosted are now hosted in the in the primary data center primary data center in in Dushanbe. The Dushanbe. The Supports current legacy Disaster recovery Center Disaster recovery Data center fully Value system. in Khujand is operational Center in Khujand is operational. and contains the disaster operational and recovery data storage contains the disaster devices along with its recovery data storage operational staff devices along with its responsible for its operational staff monitoring. responsible for its monitoring. 5/21/2019 Page 6 of 8 The World Bank Implementation Status & Results Report Tax Administration (P127807) Date 01-Jan-2013 07-Nov-2018 01-Apr-2019 02-Jan-2017 IN00700119 ►Component 3: Implementation of Integrated Tax Management Information System (ITMIS) (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Following the contract award of the retendered ITMIS on June 28th, 2018, implementation has been satisfactory. The Contract with ITMIS TC has been working supplier was signed in closely with the July 2018. According to successful bidder and Existing tax system has implementation schedule, ITMS deployed and Value delivered the first limited capacity the system will be fully operational phase into production completed in October 26, two months earlier 2019 and implemented than planned in the from January1, 2020. inception report as a result of the strong commitment and intensive involvement from both the business and IT staff. Date 01-Jan-2013 07-Nov-2018 01-Apr-2019 31-Dec-2019 Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P127807 IDA-H8100 Effective USD 18.00 18.00 0.00 11.75 4.89 71% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P127807 IDA-H8100 Effective 31-Oct-2012 14-Nov-2012 08-Feb-2013 31-Dec-2017 31-Dec-2019 Cumulative Disbursements 5/21/2019 Page 7 of 8 The World Bank Implementation Status & Results Report Tax Administration (P127807) Restructuring History Level 2 Approved on 27-Feb-2017 Related Project(s) There are no related projects. 5/21/2019 Page 8 of 8