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: 15 | ARCHIVED on 09-Dec-2019 | ISR39171 | 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 Satisfactory Satisfactory Overall Implementation Progress (IP) Satisfactory Satisfactory Overall Risk Rating Substantial Moderate Implementation Status and Key Decisions Overall, the project continues to make good progress in achieving desired outcomes and is expected to close in December 2019 with satisfactory outcomes. Generally, almost all the results indicators show that they are over achieved. Component 1. Institutional Development 12/9/2019 Page 1 of 8 The World Bank Implementation Status & Results Report Tax Administration (P127807) 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. Personal information of all 1,800 employees of TC have been entered into the system. To further enhance the system functionalities, TC is discussing the issue of integrating HRMIS with the accounting system. Component 2. Operational Development A number of the reports required under this component have been delivered by consultants related to tax policy analysis and revenue forecasting, internal audit and appeal, and taxpayer services. However, recommendations from the reports are expected to be implemented under a new tax reform project that is under preparation. Component 3. IT Infrastructure Modernization The TC continues to expand its electronic service offerings providing an increasing electronic suite of services while the new ITMIS is being introduced as part of this project. The TC is now offering 36 electronic services (up from 24 in April 2019) under a newly structured TC website. Feedback received about taxpayers response to the first stage rollout of the ITMIS has been positive. The TC implemented special training sessions for taxpayer segments (e.g.: embassies and donors) which were well received and have contributed to transitioning to e-filing of all their declarations. It is expected that a similar approach, with taxpayers and the TC staff, will be taken when the final stage of ITMIS is released at the end of 2019. TC is intending to hold a presentation of the Final Taxpayers Perception Survey to taxpayers and donors’ community at the end November this year, which includes key performance indicators to assess progress achieved in taxpayer services since the beginning of project implementation. 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 Moderate Technical Design of Project or Program -- Moderate Moderate Institutional Capacity for Implementation and Sustainability -- Substantial Moderate Fiduciary -- Substantial Moderate Environment and Social -- Low Low Stakeholders -- Substantial Moderate Other -- Substantial Moderate Overall -- Substantial Moderate Results PDO Indicators by Objectives / Outcomes Increase the level of voluntary compliance IN00762644 ►Increase in Voluntary Compliance: the total number of active taxpayers (Number, Custom) 12/9/2019 Page 2 of 8 The World Bank Implementation Status & Results Report Tax Administration (P127807) Baseline Actual (Previous) Actual (Current) End Target Value 161,000.00 315,890.00 324,497.00 201,500.00 Date 01-Jan-2013 01-Apr-2019 01-Oct-2019 31-Dec-2019 More effective and efficient tax administration in revenue collection IN00762645 ►Increased efficiency: average tax collected per tax inspector (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value TJS 2.1 million TJS 5.7 million TJS 5.7 million TJS 2.9 million Date 01-Jan-2013 01-Apr-2019 01-Oct-2019 31-Dec-2019 IN00762672 ►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 6.20 8.50 10.00 Date 01-Jan-2013 01-Apr-2019 01-Oct-2019 31-Dec-2019 IN00762674 ►Share of revenue collected by the Large Taxpayer Inspectorate (LTI) (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 43.60 58.80 55.30 60.00 Date 01-Jan-2013 01-Apr-2019 01-Oct-2019 31-Dec-2019 Total data includes taxes collected by LTI and MTI Comments: IN00762675 ►Adjustment as a result of audit per auditor (Somoni millions) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 184.00 734.30 381.70 280.00 Date 01-Jan-2013 01-Apr-2019 01-Oct-2019 31-Dec-2019 IN00762676 ►Enhanced effectiveness: tax gap as measured by VAT productivity (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.37 0.35 0.35 0.42 Date 01-Jan-2013 01-Apr-2019 01-Oct-2019 31-Dec-2019 Tax gap unit of measure is coefficient. As practice shows, mid-year data does not provide a real progress Comments: on this indicator. Once data for whole year is available, the indicator will be recalculated. IN00762677 ►Enhanced effectiveness: tax gap as measured by CIT productivity (Number, Custom) 12/9/2019 Page 3 of 8 The World Bank Implementation Status & Results Report Tax Administration (P127807) Baseline Actual (Previous) Actual (Current) End Target Value 0.03 0.02 0.02 0.06 Date 01-Jan-2013 01-Apr-2019 01-Oct-2019 31-Dec-2019 Tax gap unit of measure is coefficient. As practice shows, mid-year data does not provide a real progress Comments: on this indicator. Once data for whole year is available, the indicator will be recalculated. Improved quality of taxpayers services IN00762671 ►% 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 01-Apr-2019 01-Oct-2019 31-Dec-2019 IN00762673 ►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 01-Apr-2019 01-Oct-2019 31-Dec-2019 Intermediate Results Indicators by Components Institutional development IN00762678 ►Component 1: Implementation of Human Resourse Management Information System (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target After the successful After the successful launch of the new launch of the new HRMIS HRMIS system in system in September September 2017 and 2017 and loading loading historical historical information into information into it; the it; the system became system became operational in all offices operational in all on January 1, 2019. offices on January 1, Take-up is reported to be System fully Value No HRMIS available 2019. Personal excellent and the field operational information of all 1,800 office staff have made a employees of TC have number of suggestions been entered into the for further enhancements system. To further that are being reviewed enhance the system and prioritized for an functionalities, TC is upcoming release by IT discussing the issue of staff, who have been integrating HRMIS with certified in the software. the accounting system. 12/9/2019 Page 4 of 8 The World Bank Implementation Status & Results Report Tax Administration (P127807) Date 01-Jan-2013 01-Apr-2019 01-Oct-2019 01-Jan-2019 IN00762681 ►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 01-Apr-2019 01-Oct-2019 31-Dec-2018 IN00762684 ►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 implemented. being implemented. deveped Date 01-Jan-2013 01-Apr-2019 01-Oct-2019 28-Jun-2019 IN00762686 ►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 01-Apr-2019 01-Oct-2019 30-Dec-2016 Operational development IN00762679 ►Component 2: Development of Call Center (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Funding was provided Funding was provided to to set-up a modern set-up a modern contact contact center with up center with up to ten to ten seats in the old seats in the old training training building and building and was was operational, as operational, as planned, planned, in January in January 2018. Use of 2018. Use of the the contact center contact center Call Center Value Manual system available continues to expand with continues to expand operational the number of calls with the number of exceeding 30,000 in calls exceeding 29,000 2018. Continued fine in nine months of 2019 tuning of the operation is (in 2018, calls underway based upon exceeded 30,000). the analysis of the Continued fine tuning queries that the contact of the operation is center is handling. underway based upon the analysis of the 12/9/2019 Page 5 of 8 The World Bank Implementation Status & Results Report Tax Administration (P127807) queries that the contact center is handling. Date 01-Jan-2013 01-Apr-2019 01-Oct-2019 31-Dec-2018 IN00762682 ►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 6.20 8.50 10.00 Date 01-Jan-2013 01-Apr-2019 01-Oct-2019 31-Dec-2019 IN00762685 ►Component 2: Share of revenue collected by Large Taxpayers Inspectorate (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 43.60 58.80 55.30 60.00 Date 01-Jan-2013 01-Apr-2019 01-Oct-2019 31-Dec-2019 IN00762687 ►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 01-Apr-2019 01-Oct-2019 31-Dec-2019 IT Infrastructure and system development IN00762680 ►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. Date 01-Jan-2013 01-Apr-2019 01-Oct-2019 02-Jan-2017 IN00762683 ►Component 3: Implementation of Integrated Tax Management Information System (ITMIS) (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target 12/9/2019 Page 6 of 8 The World Bank Implementation Status & Results Report Tax Administration (P127807) Following the contract Following the contract award of the re- award of the retendered tendered ITMIS on ITMIS on June 28th, June 28th, 2018, 2018, implementation implementation has has been satisfactory. been satisfactory. The The TC has been TC has been working working closely with the closely with the successful bidder and successful bidder and Existing tax system has ITMS deployed and Value delivered the first phase delivered the full ITMIS limited capacity fully operational into production two system by the end of months earlier than October 2019 – a full planned in the inception two months ahead of report as a result of the schedule. This allows strong commitment and for additional time to intensive involvement test and adjust the from both the business new system before the and IT staff. end of the contract (Dec 31, 2019). Date 01-Jan-2013 01-Apr-2019 01-Oct-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 15.59 1.01 94% 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 12/9/2019 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. 12/9/2019 Page 8 of 8