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: 13 | ARCHIVED on 22-Nov-2018 | ISR34754 | 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 Moderately Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Overall Risk Rating Substantial Substantial Implementation Status and Key Decisions Overall, the project continues to make good progress. Generally, all the indicators show continued improvement and overachieving of some targets, the TC continues to carry out reforms in parallel to the activities in the project, development of the Tax Administration System is underway 11/22/2018 Page 1 of 7 The World Bank Implementation Status & Results Report Tax Administration (P127807) which has committed most of the outstanding project funds for payout over the remaining life of the project, and the reform commitment of the management of the TC remains strong. Component 1. Institutional Development Human Resources Management Information System (HRMIS). After the successful launch of the new HRMIS system in September 2017, the staff have been occupied with loading historical information into it before it can be made operational. The HR team has asked to continue parallel testing of the new system and is committed to using it exclusively for all personnel activities from January 2019. The TC has confirmed that it now has IT staff that have been certified in the software and that they have successfully made a number of enhancements to the system. Component 2. Operational Development Contact Center. Funding was provided to set-up a modern contact center with up to ten seats in the old training building and was operational, as planned, in January 2018. Use of the contact center continues to expand with the number of calls received tripling from the pre-contact center period (now 27,000 year-to-date). Continued fine tuning of the operation is underway based upon the analysis of the queries that the contact center is handling. 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 20 electronic services (up from 17 in April 2018). As expected, five years after E-filing becoming available, e-filing rates have stabilized for legal entities at 98.9% with individual entrepreneurs at 77.8% (e-filing was introduced in 2014). 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 the next mission. The ITMIS procurement has been completed and the contract awarded on June 28th, 2018. This leaves 16 months to complete the installation, customization and user acceptance before the project ends. The TC has been working closely with the supplier to develop the contract timetable. It is expected that the system will be operational from January 1, 2020. 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 Increase the level of voluntary compliance IN00645888 11/22/2018 Page 2 of 7 The World Bank Implementation Status & Results Report Tax Administration (P127807) ►Increase in Voluntary Compliance: the total number of active taxpayers (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 161,000.00 -- 312,623.00 201,500.00 Date 01-Jan-2013 -- 07-Nov-2018 31-Dec-2019 More effective and efficient tax administration in revenue collection IN00645889 ►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 2.9 million Date 01-Jan-2013 -- 07-Nov-2018 31-Dec-2019 IN00645902 ►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 10.00 Date 01-Jan-2013 -- 07-Nov-2018 31-Dec-2019 IN00645890 ►Share of revenue collected by the Large Taxpayer Inspectorate (LTI) (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 43.60 -- 58.80 60.00 Date 01-Jan-2013 -- 07-Nov-2018 31-Dec-2019 Total data includes taxes collected by LTI and MTI Comments: IN00645884 ►Adjustment as a result of audit per auditor (Somoni millions) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 184.00 -- 712.00 280.00 Date 01-Jan-2013 -- 07-Nov-2018 31-Dec-2019 IN00645885 ►Enhanced effectiveness: tax gap as measured by VAT productivity (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.37 -- 0.39 0.42 Date 01-Jan-2013 -- 07-Nov-2018 31-Dec-2019 Tax gap unit of measure is coefficient Comments: IN00645906 11/22/2018 Page 3 of 7 The World Bank Implementation Status & Results Report Tax Administration (P127807) ►Enhanced effectiveness: tax gap as measured by CIT productivity (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.03 -- 0.04 0.06 Date 01-Jan-2013 -- 07-Nov-2018 31-Dec-2019 Tax gap unit of measure is coefficient Comments: Improved quality of taxpayers services IN00645926 ►% of taxpayers legal entities filing electronically (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 98.90 70.00 Date 01-Jan-2013 -- 07-Nov-2018 31-Dec-2019 IN00645927 ►Improved taxpayer service: average time to comply (Hours, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 226.00 -- 209.00 180.00 Date 01-Jan-2013 -- 07-Nov-2018 31-Dec-2019 Intermediate Results Indicators by Components Institutional development IN00645937 ►Component 1: Implementation of Human Resourse Management Information System (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target HRMIS has been developed. 90% of data has been System fully Value No HRMIS available -- introduced into the operational data base. The system will be implemenetd from January 1, 2019 Date 01-Jan-2013 -- 07-Nov-2018 01-Jan-2019 IN00645938 ►Component 1: Building training facilities (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Training Centers in Training Center not Khujand, Kulob, Training center fully Value -- present Khorog and Bokhtar equipped are built and equipped. 11/22/2018 Page 4 of 7 The World Bank Implementation Status & Results Report Tax Administration (P127807) Date 01-Jan-2013 -- 07-Nov-2018 31-Dec-2018 IN00645939 ►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 Value -- curriculum design hoc manner being finalized. deveped Date 01-Jan-2013 -- 07-Nov-2018 28-Jun-2019 IN00645951 ►Component 1: Organizational review, work force review, organizational restructuring, staff redeployment (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Organizational review, New organizational workforce review, Organizational plan for structure of HQ was organizational Value HQ submitted to -- approved, work force restructuring and staff government reviewed and staff redeployment redeployed completed Date 01-Jan-2013 -- 07-Nov-2018 30-Dec-2016 Operational development IN00645923 ►Component 2: Development of Call Center (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Call Center with up to ten seats is established and equipped. Up to 10,000 calls were responded in 2017. Over one thousand Call Center Value Manual system available -- sample questions and operational answers (FAQs) have been constructed for use by the Call Center staff. The Central Call Center is linked to two other satellite contact centers in the regions. Date 01-Jan-2013 -- 07-Nov-2018 31-Dec-2018 IN00645952 ►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 10.00 Date 01-Jan-2013 -- 07-Nov-2018 31-Dec-2019 IN00645953 ►Component 2: Share of revenue collected by Large Taxpayers Inspectorate (Percentage, Custom) 11/22/2018 Page 5 of 7 The World Bank Implementation Status & Results Report Tax Administration (P127807) Baseline Actual (Previous) Actual (Current) End Target Value 43.60 -- 58.80 60.00 Date 01-Jan-2013 -- 07-Nov-2018 31-Dec-2019 IN00645949 ►Component 3: Percent of taxpayers legal entities filing electronically (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 98.90 70.00 Date 01-Jan-2013 -- 07-Nov-2018 31-Dec-2019 IT Infrastructure and system development IN00645924 ►Component 3: Data Center established (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target The new Data Center became operational in 2016 and all production services are now hosted in the primary data center in Dushanbe. The Supports current legacy Disaster recovery Data center fully Value -- system. Center in Khujand is operational. operational and contains the disaster recovery data storage devices along with its operational staff responsible for its monitoring. Date 01-Jan-2013 -- 07-Nov-2018 02-Jan-2017 IN00645950 ►Component 3: Implementation of Integrated Tax Management Information System (ITMIS) (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Contract with ITMIS supplier was signed in July 2018. According to implementation Existing tax system has ITMS deployed and Value -- schedule, the system limited capacity fully operational will be completed in October 26, 2019 and implemented from January1, 2020. Date 01-Jan-2013 -- 07-Nov-2018 31-Dec-2019 Data on Financial Performance 11/22/2018 Page 6 of 7 The World Bank Implementation Status & Results Report Tax Administration (P127807) 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 8.72 8.24 51% 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 Restructuring History Level 2 Approved on 27-Feb-2017 Related Project(s) There are no related projects. 11/22/2018 Page 7 of 7