Tax System Reform

The tax reform sub-programme has a long-term development objective of building capacity aimed at maximising revenues, attaining sustainable macro-economic stability, create a conducive climate for private sector development to promote economic growth and to combat corruption. Measures to maximise revenue include improvements in operational programmes, systems and procedures, enhancing human resource management practices, improving taxpayer compliance through taxpayer education and enforcement programmes, and the introduction of a new legislation.

The specific objectives of the programme are the following

Tax Administration

• Collect revenues more effectively in support of the Government's macro-economic objective of raising the tax effort from 13 per cent of the gross domestic product at present to between 18-20 per cent.
• Improve tax revenues and ensure equity and fairness in the tax system through a comprehensive overhaul of the current tax legislation.
• Strengthen institutional capacity for implementing legislative reform measures.
• Introduce new systems and procedures of taxpayer identification, assessment, audit revenue accounting and receivable management to enhance compliance, increase revenue and support the private sector.
• Issue a computerised TIN as the foundation for tax collecting institutions to (I) independently identify taxpayers; (ii) control tax evasion; (iii) create a dependable database on taxpayers; and (iv) promote efficient and effective tax collection.
• Develop a professional, honest and competent work force in order to achieve the Government's objectives of efficient tax administration and revenue collection.
• Strengthen human resources capacity of the institutions through careful recruitment and recurrent training. Particular attention will be given to the merciless uprooting of corruption from these institutions.

Customs Administration

• Build modern national customs administration capable of
  enforcing national tax and other economic policies by establishing improved and accountable customs service delivery, integrated customs management, an enforcement infrastructure capable of targeting major contraband inlets and customs commercial frauds, etc.
• Build an improved system of information management to enhance customs ability to formulate realistic policies.
• Implement updated customs transit and clearance procedures and
  processes, enhance customs control, increase commercial transport productivity, reduce demurrage and other port charges and thereby
  reduce the cost of expensive customs clearance.
• Migrate to the improved version of Asycuda++ with additional
  utilities, enable collection offices to automatically process entries,
  produce timely and accurate trade statistics, and enhance revenue collection and customs manifesting to increase revenue.
• Build modern tariff classification infrastructure to deliver
  accurate classification.
• Lower the impact of contraband on legitimate trade by strengthening
  enforcement capacity of customs in terms of logistics, intelligence and
  investigations.
• Enhance the productivity of customs personnel by improving working
  conditions and facilities.
• Improve customs service delivery and management capability of core and other staff through management and technical trainings of employees.