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Target 17.1. Strengthening Tax Systems for Development

Writer's picture: Piyush SharmaPiyush Sharma

Updated: May 21, 2024

Strengthen domestic resource mobilization, including through international support to developing countries, to improve domestic capacity for tax and other revenue collection.

Project 1: Capacity Building for Tax Administration


Capacity Building for Tax Administration

Objective: Enhance the capacity of tax administrations in developing countries to increase domestic revenue collection.

SMART Framework:

  • Specific: Develop and implement training programs for tax officials on modern tax administration practices.

  • Measurable: Increase the number of trained tax officials by 20% within the first year.

  • Achievable: Collaborate with international organizations and tax experts to design comprehensive training modules.

  • Result Oriented: Improve tax compliance and revenue collection efficiency.

  • Time Bound: Complete training programs within 12 months and evaluate effectiveness quarterly.

Impact Assessment Methods:

  1. 17.1.1 Indicator: Measure the increase in total government revenue as a proportion of GDP after implementing the training programs.

  2. 17.1.2 Indicator: Assess the percentage change in the proportion of the domestic budget funded by domestic taxes.


Project 2: Implementing E-Government Tax Platforms


Implementing E-Government Tax Platforms

Objective: Introduce electronic tax filing and payment platforms to streamline tax processes and enhance compliance.

SMART Framework:

  • Specific: Develop user-friendly e-government platforms for tax filing and payment.

  • Measurable: Increase in the number of tax filings through the e-platform by 30% within the first six months.

  • Achievable: Collaborate with IT experts to design and deploy secure and accessible e-government platforms.

  • Result Oriented: Reduce tax evasion and increase revenue collection efficiency.

  • Time Bound: Launch e-platform within 9 months and monitor usage monthly for improvements.

Impact Assessment Methods:

  1. 17.1.1 Indicator: Measure the increase in total government revenue as a proportion of GDP attributed to improved tax compliance facilitated by the e-platform.

  2. 17.1.2 Indicator: Assess the change in the proportion of the domestic budget funded by domestic taxes post e-platform implementation.


Project 3: Tax Incentives Review and Reform


Tax Incentives Review and Reform

Objective: Evaluate and reform existing tax incentive schemes to ensure they align with development goals and maximize revenue generation.

SMART Framework:

  • Specific: Conduct a comprehensive review of existing tax incentive policies and their impact.

  • Measurable: Identify and eliminate ineffective tax incentives, resulting in a 15% increase in revenue from affected sectors within two years.

  • Achievable: Establish a task force comprising tax experts, economists, and policymakers to conduct the review.

  • Result Oriented: Increase revenue without compromising investment attractiveness and economic growth.

  • Time Bound: Complete the review and propose reforms within 18 months, with regular progress reports.

Impact Assessment Methods:

  1. 17.1.1 Indicator: Measure the change in total government revenue as a proportion of GDP resulting from the elimination of ineffective tax incentives.

  2. 17.1.2 Indicator: Assess the impact of reforms on the proportion of the domestic budget funded by domestic taxes in relevant sectors.


Project 4: Public Awareness Campaign on Tax Compliance


Public Awareness Campaign on Tax Compliance

Objective: Increase public understanding of the importance of tax compliance and its role in national development.

SMART Framework:

  • Specific: Develop and implement a multimedia campaign to educate the public on tax obligations and their benefits.

  • Measurable: Conduct surveys to measure the increase in public awareness and understanding of tax compliance by 25% within one year.

  • Achievable: Collaborate with media outlets, community leaders, and educational institutions to disseminate information effectively.

  • Result Oriented: Improve voluntary tax compliance and reduce tax evasion.

  • Time Bound: Launch campaign within 6 months and evaluate its effectiveness through regular surveys.

Impact Assessment Methods:

  1. 17.1.1 Indicator: Measure the impact of the campaign on total government revenue as a proportion of GDP, considering increased voluntary compliance.

  2. 17.1.2 Indicator: Assess the campaign's influence on the proportion of the domestic budget funded by domestic taxes, reflecting improved compliance.


Project 5: International Cooperation for Tax Information Exchange


International Cooperation for Tax Information Exchange

Objective: Enhance international cooperation and information exchange to combat tax evasion and improve revenue collection.

SMART Framework:

  • Specific: Strengthen partnerships with other countries and international organizations to facilitate the exchange of tax information.

  • Measurable: Increase the number of tax information exchange agreements signed by 20% within two years.

  • Achievable: Collaborate with relevant stakeholders to negotiate and implement agreements effectively.

  • Result Oriented: Reduce cross-border tax evasion and increase revenue from international transactions.

  • Time Bound: Sign agreements and establish information exchange mechanisms within 24 months, with regular progress reviews.

Impact Assessment Methods:

  1. 17.1.1 Indicator: Measure the increase in total government revenue as a proportion of GDP resulting from improved tax compliance through international cooperation.

  2. 17.1.2 Indicator: Assess the impact of information exchange agreements on the proportion of the domestic budget funded by domestic taxes, particularly in sectors prone to tax evasion.


Project 6: Strengthening Anti-Corruption Measures in Tax Administration


Strengthening Anti-Corruption Measures in Tax Administration

Objective: Implement measures to prevent corruption and enhance transparency in tax administration processes.

SMART Framework:

  • Specific: Review and strengthen internal control mechanisms to detect and prevent corruption in tax administration.

  • Measurable: Reduce reported cases of corruption in tax administration by 30% within two years.

  • Achievable: Implement robust anti-corruption policies and procedures, including whistleblower protection and regular audits.

  • Result Oriented: Improve public trust in tax authorities and increase revenue collection efficiency.

  • Time Bound: Implement reforms within 18 months and monitor progress through regular audits and reporting.

Impact Assessment Methods:

  1. 17.1.1 Indicator: Measure the impact of anti-corruption measures on total government revenue as a proportion of GDP, considering reduced revenue leakage due to corruption.

  2. 17.1.2 Indicator: Assess the change in the proportion of the domestic budget funded by domestic taxes, reflecting improved revenue collection efficiency post anti-corruption reforms.


Project 7: Capacity Building for Taxpayer Education and Assistance


Capacity Building for Taxpayer Education and Assistance

Objective: Enhance taxpayer education and assistance programs to improve compliance and reduce errors in tax filings.

SMART Framework:

  • Specific: Develop educational materials and workshops to help taxpayers understand their rights and obligations.

  • Measurable: Increase in the number of taxpayers utilizing assistance services by 25% within one year.

  • Achievable: Collaborate with community organizations and tax professionals to deliver tailored assistance programs.

  • Result Oriented: Reduce errors in tax filings and increase voluntary compliance.

  • Time Bound: Launch assistance programs within 9 months and evaluate effectiveness through user feedback and improved compliance rates.

Impact Assessment Methods:

  1. 17.1.1 Indicator: Measure the impact of taxpayer education programs on total government revenue as a proportion of GDP, considering improved compliance.

  2. 17.1.2 Indicator: Assess the change in the proportion of the domestic budget funded by domestic taxes, reflecting improved compliance facilitated by assistance programs.


Project 8: Tax Policy Reform for Sustainable Development


Tax Policy Reform for Sustainable Development

Objective: Review and reform tax policies to promote sustainable development while ensuring revenue generation.

SMART Framework:

  • Specific: Analyze existing tax policies and their alignment with sustainable development goals.

  • Measurable: Identify and implement policy reforms leading to a 10% increase in revenue from environmentally friendly sectors within three years.

  • Achievable: Engage stakeholders from government, business, and civil society to develop and implement policy recommendations. Impact Assessment Methods:

  • Result Oriented: Align tax policies with sustainable development objectives, promoting environmental protection and social equity.

  • Time Bound: Complete policy review and propose reforms within 24 months, with implementation timelines specified for each reform.


Project 9: Public-Private Partnerships for Tax Compliance Solutions


Public-Private Partnerships for Tax Compliance Solutions

Objective: Foster collaboration between the public and private sectors to develop innovative solutions for tax compliance.

SMART Framework:

  • Specific: Establish partnerships between tax authorities and private sector entities to develop technological solutions and best practices.

  • Measurable: Implement at least three pilot projects resulting in a 15% increase in tax compliance within two years.

  • Achievable: Facilitate knowledge exchange and joint initiatives through structured partnerships and forums.

  • Result Oriented: Improve tax administration efficiency and compliance through innovative solutions.

  • Time Bound: Launch pilot projects within 12 months and evaluate their impact quarterly for adjustments and scaling.

Impact Assessment Methods:

  1. 17.1.1 Indicator: Measure the impact of public-private partnerships on total government revenue as a proportion of GDP, considering increased compliance facilitated by innovative solutions.

  2. 17.1.2 Indicator: Assess the change in the proportion of the domestic budget funded by domestic taxes, reflecting the effectiveness of partnership initiatives in improving revenue collection.


Project 10: Enhancing Legislative Framework for Tax Governance


Enhancing Legislative Framework for Tax Governance

Objective: Strengthen legislative frameworks to enhance tax governance and transparency.

SMART Framework:

  • Specific: Review existing tax laws and regulations to identify gaps and areas for improvement.

  • Measurable: Draft and pass legislation addressing identified gaps within three years.

  • Achievable: Engage lawmakers, legal experts, and stakeholders in the legislative reform process.

  • Result Oriented: Improve tax governance, transparency, and compliance through clear and enforceable laws.

  • Time Bound: Complete legislative review within 18 months and present draft legislation for parliamentary approval within three years.

Impact Assessment Methods:

  1. 17.1.1 Indicator: Measure the impact of legislative reforms on total government revenue as a proportion of GDP, considering improved tax governance and enforcement.

  2. 17.1.2 Indicator: Assess the change in the proportion of the domestic budget funded by domestic taxes, reflecting the impact of legislative reforms on revenue collection mechanisms.


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