The World Bank Report No: ISR14022 Implementation Status & Results Tajikistan Tax Administration (P127807) Public Disclosure Copy Operation Name: Tax Administration (P127807) Project Stage: Implementation Seq.No: 3 Status: ARCHIVED Archive Date: 15-Jun-2014 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 Dates Board Approval Date 31-Oct-2012 Original Closing Date 31-Dec-2017 Planned Mid Term Review Date 30-Jun-2015 Last Archived ISR Date 01-Nov-2013 Effectiveness Date 08-Feb-2013 Revised Closing Date 31-Dec-2017 Actual Mid Term Review Date 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? Yes No Component(s) Component Name Component Cost Institutional development 2.20 Operational development 1.80 IT Infrastructure and system development 12.40 Public Disclosure Copy 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 World Bank Report No: ISR14022 Progress in project implementation has been satisfactory but needs to be speeded up. Currently the Project is focused in procurement of key consulting services. Three international advisers on change management, procurement and IT have been selected. Advisers on change management and procurement have already begun to provide assistance to TC on project implementation. The Project also short-listed companies for providing help in institutional development and changing business processes. RFP for short-listed firms have been issued. It is expected that selected firms will be on ground by November 2014. There is a noticeable progress in e-filing. The number of taxpayers, who file electronically, has been Public Disclosure Copy expanded from 1017 last June to 4,700 as of now and is increasing every month. 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 177120.00 201500.00 Date 30-Jun-2012 31-Jan-2014 31-Dec-2017 Comments Total number of active By now 21% increase form taxpayer firms + number of baseline figure. active individual taxpayers Improved taxpayer service Hours Value 226.00 224.00 180.00 Date 31-Dec-2011 15-May-2014 31-Dec-2017 Comments Average time to comply Improvement shown in Doing based on Doing Business Business Report 2014 Indicator Improved Taxpayer Service Text Value None Improvement Sub Type Supplemental Increased Efficiency Text Value TJS 2.1 million TJS 3.2 million TJS 2.9 million Date 31-Dec-2011 15-May-2014 31-Dec-2017 Comments Average tax revenue The total increase is 52%, Public Disclosure Copy collected per tax official which is above end target. Enhanced Effectiveness Number Value 0.37 0.37 0.42 Date 31-Dec-2011 30-Jan-2015 31-Dec-2017 Comments VAT productivity Mid-term indicator. Not due until 2015. Enhanced Effectiveness Number Value 0.03 0.03 0.06 Sub Type Supplemental Page 2 of 5 The World Bank Report No: ISR14022 Adjustment as a result of audit per auditor Number Value 184.00 193.00 280.00 Date 31-Dec-2011 31-Jan-2014 30-Dec-2017 Comments Tajik somoni in millions Tajik somoni in millions Tajik somoni in millions Public Disclosure Copy Due in January 2014. Intermediate Results Indicators Indicator Name Core Unit of Measure Baseline Current End Target Component 1 Text Value No HRIS available Not yet due System fully operational Date 05-Sep-2012 15-May-2014 31-Dec-2016 Comments Component 1 Text Value Training center not present Training Center in the Sughd Training center fully equipped Region has been equiped. Date 05-Sep-2012 15-May-2014 31-Jan-2015 Comments Component 1 Text Value Training provided in ad hoc Not yet due Training strategy and manner curriculum design developed Date 05-Sep-2012 15-May-2014 31-Dec-2015 Comments Component 1 Text Value Organizational plan for HQ The new organizational Organizational review, submitted to government structure was approved by the workforce review, Government on July 2012 and organizational restructuring currently is being and staff redeployment implemented. completed Date 05-Sep-2012 15-May-2014 31-Dec-2016 Comments Component 2 Percentage Value 13.80 8.40 10.00 Date 31-Dec-2011 15-May-2014 31-Dec-2017 Comments Amount of arrears as a Public Disclosure Copy percentage of total annual tax collection (excluding Barki Tojik) Component 2 Percentage Value 48.00 45.70 60.00 Date 31-Dec-2011 15-May-2014 31-Dec-2017 Comments Share of revenue collection from LTI Component 2 Percentage Value 0.05 28.00 70.00 Date 31-Dec-2011 31-Jan-2014 31-Dec-2017 Page 3 of 5 The World Bank Report No: ISR14022 Comments Percentage of VAT taxpayers filing electronically is insignificant Public Disclosure Copy Component 2 Text Value Manual system available Not yet due Call center operational Date 05-Sep-2012 15-May-2014 31-Dec-2014 Comments Development of call center Component 3 Text Value Supports current legacy Not yet due Data center fully operational system Date 05-Sep-2012 15-May-2014 30-Sep-2017 Comments Some servers to take care of increased capacity needs are being provided by the project until the main data center is available. Component 3 Text Value Existing tax system has Two study tours on ITMS to ITMS deployed and fully limited capacity Malaysia and Estonia have operational been conducted. Date 05-Sep-2012 15-May-2014 31-Dec-2016 Comments The study tours were successful. They help TC staff to understand advantages of COTS. Data on Financial Performance (as of 06-Feb-2014) Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P127807 IDA-H8100 Effective 31-Oct-2012 14-Nov-2012 08-Feb-2013 31-Dec-2017 31-Dec-2017 Disbursements (in Millions) Public Disclosure Copy 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 The World Bank Report No: ISR14022 Public Disclosure Copy Key Decisions Regarding Implementation The project is in the process of procurement of key consulting services. The expansion of this service is an important development in the TC modernization. As recommended by the Bank team during the previous visit, the TC now provides electronic token free of charge to taxpayers who register for e-filing. In addition to the ease of filing for taxpayers, e-filing is beneficial for the TC in reducing its own administrative costs. Providing free tokens and taxpayer seminar educating people able the benefits of e-filing has helped increase the number. Almost 90 percent of large taxpayers file electronically and by June 2014, it will become mandatory for all large taxpayers to file electronically. Restructuring History There has been no restructuring to date. Related Projects There are no related projects. Public Disclosure Copy Page 5 of 5