Tax Modernization Project

Abstract*

The Tax modernization Project will assist the Government of Tanzania to increase tax revenues without increasing tax rates. The project has the following four components: (i) will improve the legal framework; (ii) broadening the tax base; (iii) strengthening the Tanzania Revenue Authority (TRA) to increase the efficiency and effectiveness of tax administration; and component (iv) will improve the administrative infrastructure. Key activities accomplished... Show More

Development Objective

The project development objective for TAP was to assist the GoT to increase tax revenues without increasing tax rates. The PDO for TMP-IDA is designed to reflect TRAs mission statement which is: 'To be an effective and efficient Tax Administration, which promotes voluntary tax compliance by providing high quality service with fairness and integrity through competent and motivated staff'.

Key Details

Project Details

Project ID
P100314
Status
Closed
Team Leader
Sherri Ellen Archondo
Borrower 2
N/A

Country
Tanzania
Disclosure Date
May 11, 2006
Approval Date
(as of board presentation)
June 15, 2006
Effective Date
November 28, 2006

Total Project Cost 1
US$ 33.60 million
Implementing Agency
N/A
Region
Eastern and Southern Africa
Fiscal Year 3
2006

Commitment Amount
US$ 31.60 million
Environmental Category
C
Environmental and Social Risk
Not Applicable
Closing Date
September 30, 2011

Last Stage Reached
BANK APPROVED
Last Update Date
January 15, 2013

Notes
1. Total project cost includes funding from World Bank and non-bank sources in US$ millions. Active and Closed projects show current commitments. Proposed (pipeline) and dropped projects show the forecast amount. The commitment amount for projects in the pipeline is indicative and may be modified during the project preparation.
2. Borrower refers to the Borrower of a Loan or Recipient of a Grant.
3. ”Fiscal Year” is the fiscal year in which the project was approved (or dropped if the status is dropped). The World Bank's fiscal year is from July 1 - June 30. For example, a fiscal year of 1996 corresponds to July 1, 1995 - June 30, 1996.

Sectors

Themes

FY17 - Economic Policy

FY17 - Fiscal Policy25%
- FY17 - Tax policy25%

FY17 - Public Sector Management

FY17 - Public Administration25%
- FY17 - Administrative and Civil Service Reform25%
FY17 - Public Finance Management25%
- FY17 - Domestic Revenue Administration25%
FY17 - Rule of Law24%
- FY17 - Judicial and other Dispute Resolution Mechanisms8%
- FY17 - Legal Institutions for a Market Economy8%
- FY17 - Personal and Property Rights8%

Project Map

Interactive Map

Finances

Financing Plan (US$ Millions)

Financier	Commitments
IDA Credit	12.00
Borrower/Recipient	2.00
DENMARK: Danish Intl. Dev. Assistance (DANIDA)	8.00
UK: British Department for International Development (DFID)	11.60

Total Project Financing (US$ Millions)

Product Line	IBRD/IDA
IBRD Commitment	N/A
IDA Commitment	12.00
IBRD + IDA Commitment	12.00

Lending Instrument
Grant Amount	19.60
Total Project Cost**	33.60

Summary Status of World Bank Financing (US$ Millions) as of June 30, 2025

No data available.

Detailed Financial Activity as of June 30, 2025

Download:

Period	Financier	Transaction Type	Amount (US$)
Nov 24, 2015	IDA-41900	Int Charges	579.97
Nov 24, 2015	IDA-41900	Int Charges	579.97
May 27, 2015	IDA-41900	Int Charges	41,494.66
May 27, 2015	IDA-41900	Int Charges	41,494.66
May 15, 2015	IDA-41900	Int Charges	1,174.91
May 15, 2015	IDA-41900	Int Charges	1,174.91
May 27, 2014	IDA-41900	Int Charges	504.77
May 27, 2014	IDA-41900	Int Charges	504.77
May 27, 2014	IDA-41900	Int Charges	48,014.98
May 27, 2014	IDA-41900	Int Charges	48,014.98
Nov 15, 2013	IDA-41900	Int Charges	457.78
Nov 15, 2013	IDA-41900	Int Charges	457.78
Nov 29, 2013	IDA-41900	Int Charges	46,821.10
Nov 29, 2013	IDA-41900	Int Charges	46,821.10
Nov 15, 2014	IDA-41900	Int Charges	257.92
Dec 2, 2014	IDA-41900	Int Charges	45,246.59
Dec 2, 2014	IDA-41900	Int Charges	45,246.59
Nov 15, 2014	IDA-41900	Int Charges	257.92
May 15, 2018	IDA-41900	Int Charges	43,119.73
May 15, 2018	IDA-41900	Int Charges	43,119.73
Nov 15, 2018	IDA-41900	Loan Repay	111,840.85
Nov 15, 2018	IDA-41900	Int Charges	41,284.30
Nov 15, 2018	IDA-41900	Int Charges	41,284.30
May 15, 2018	IDA-41900	Loan Repay	1,681.07
May 15, 2018	IDA-41900	Loan Repay	116,861.19
May 15, 2018	IDA-41900	Int Charges	2.47
May 15, 2018	IDA-41900	Int Charges	2.47
May 16, 2017	IDA-41900	Loan Repay	109,766.03
May 16, 2017	IDA-41900	Int Charges	39,631.32
May 16, 2017	IDA-41900	Int Charges	39,631.32
Nov 16, 2017	IDA-41900	Loan Repay	116,967.75
Nov 16, 2017	IDA-41900	Int Charges	2.34
Nov 16, 2017	IDA-41900	Int Charges	2.34
Nov 16, 2017	IDA-41900	Int Charges	42,985.65
Nov 16, 2017	IDA-41900	Int Charges	42,985.65
Nov 16, 2017	IDA-41900	Int Charges	2,754.27
Nov 16, 2017	IDA-41900	Int Charges	2,754.27
Nov 15, 2016	IDA-41900	Int Charges	42,440.49
Nov 15, 2016	IDA-41900	Int Charges	42,440.49
Nov 15, 2021	IDA-41900	Int Charges	39,355.60
Nov 15, 2021	IDA-41900	Int Charges	39,355.60
May 25, 2022	IDA-41900	Loan Repay	109,494.52
May 25, 2022	IDA-41900	Int Charges	37,340.14
May 25, 2022	IDA-41900	Int Charges	37,340.14
May 15, 2020	IDA-41900	Int Charges	148.79
May 15, 2020	IDA-41900	Int Charges	148.79
May 15, 2020	IDA-41900	Loan Repay	112,829.37
May 15, 2020	IDA-41900	Int Charges	39,349.20
May 15, 2020	IDA-41900	Int Charges	39,349.20
Nov 15, 2019	IDA-41900	Loan Repay	112,955.25
Nov 15, 2019	IDA-41900	Int Charges	-0.01
Nov 15, 2019	IDA-41900	Int Charges	-0.01
Nov 15, 2018	IDA-41900	Loan Repay	2,837.76
May 15, 2019	IDA-41900	Loan Repay	2,373.88
May 15, 2019	IDA-41900	Loan Repay	112,359.51
May 15, 2019	IDA-41900	Int Charges	40,873.73
May 15, 2019	IDA-41900	Int Charges	40,873.73
Nov 15, 2019	IDA-41900	Loan Repay	1,129.06
Nov 15, 2019	IDA-41900	Loan Repay	0.01
Nov 15, 2019	IDA-41900	Int Charges	40,064.29
Nov 15, 2019	IDA-41900	Int Charges	40,064.29
Jun 15, 2006	IDA-41900	Loan Commitment	12,000,000.00
Nov 15, 2023	IDA-41900	Int Charges	4.59
Nov 15, 2023	IDA-41900	Int Charges	4.59
Nov 15, 2023	IDA-41900	Int Charges	34,660.84
Nov 15, 2023	IDA-41900	Int Charges	34,660.84
Nov 15, 2023	IDA-41900	Int Charges	812.34
Nov 15, 2023	IDA-41900	Int Charges	812.34
Nov 15, 2023	IDA-41900	Loan Repay	110,087.05
May 17, 2024	IDA-41900	Int Charges	840.60
May 17, 2024	IDA-41900	Int Charges	840.60
May 17, 2024	IDA-41900	Loan Repay	109,873.74
May 17, 2024	IDA-41900	Int Charges	35,022.24
May 17, 2024	IDA-41900	Int Charges	35,022.24
May 17, 2023	IDA-41900	Int Charges	2,365.09
May 17, 2023	IDA-41900	Int Charges	2,365.09
May 17, 2023	IDA-41900	Loan Repay	111,101.31
May 17, 2023	IDA-41900	Int Charges	35,426.94
May 17, 2023	IDA-41900	Int Charges	35,426.94
May 15, 2022	IDA-41900	Loan Repay	2,355.73
Nov 15, 2022	IDA-41900	Loan Repay	3,503.13
Nov 15, 2022	IDA-41900	Loan Repay	105,722.38
Nov 15, 2022	IDA-41900	Int Charges	22.28
Nov 15, 2022	IDA-41900	Int Charges	22.28
Nov 15, 2022	IDA-41900	Int Charges	33,719.26
Nov 15, 2022	IDA-41900	Int Charges	33,719.26
Nov 15, 2020	IDA-41900	Loan Repay	2,103.28
Nov 15, 2020	IDA-41900	Loan Repay	115,741.78
Nov 15, 2020	IDA-41900	Int Charges	40,301.53
Nov 15, 2020	IDA-41900	Int Charges	40,301.53
May 15, 2021	IDA-41900	Int Charges	39,609.08
May 15, 2021	IDA-41900	Int Charges	39,609.08
May 15, 2021	IDA-41900	Int Charges	359.73
May 15, 2021	IDA-41900	Int Charges	359.73
May 15, 2021	IDA-41900	Loan Repay	119,412.10
Nov 15, 2021	IDA-41900	Int Charges	1,113.52
Nov 15, 2021	IDA-41900	Int Charges	1,113.52
Nov 15, 2021	IDA-41900	Loan Repay	116,609.19
May 15, 2017	IDA-41900	Loan Repay	4,205.65
May 19, 2016	IDA-41900	Int Charges	42,314.54
May 19, 2016	IDA-41900	Int Charges	42,314.54
May 15, 2016	IDA-41900	Int Charges	1,065.64
May 15, 2016	IDA-41900	Int Charges	1,065.64
Nov 15, 2016	IDA-41900	Int Charges	385.95
Nov 15, 2016	IDA-41900	Int Charges	385.95
Nov 15, 2016	IDA-41900	Loan Repay	113,174.65
Nov 24, 2015	IDA-41900	Int Charges	42,850.41
Nov 24, 2015	IDA-41900	Int Charges	42,850.41

Footnotes

Ratings

IMPLEMENTATION RATINGS

Name	Review	Date
Counterpart Funding	Satisfactory	2011-11-04
Progress towards achievement of PDO	Moderately Satisfactory	2011-11-04
Procurement	Satisfactory	2011-11-04
Project Management	Highly Satisfactory	2011-11-04
Financial Management	Satisfactory	2011-11-04
Monitoring and Evaluation	Satisfactory	2011-11-04
Overall Implementation Progress (IP)	Satisfactory	2011-11-04

COMPLETION RATINGS

INDICATOR	IMPLEMENTATION COMPLETION & RESULTS REPORT: 04-13-2012
Outcomes	Moderately Satisfactory
Risk to Development Outcome	Modest
Bank Performance	Moderately Satisfactory
Borrower Performance	Moderately Satisfactory
Government Performance	Moderately Satisfactory
Implementing Agency	Moderately Satisfactory

INDEPENDENT EVALUATION RATINGS

INDICATOR	ICR REVIEW: 11-09-2012	PROJECT PERFORMANCE ASSESSMENT REPORT:
Outcome Rating	Moderately Satisfactory	N/a
Risk To Development Outcome	Moderate	N/a
Bank Performance	Moderately Satisfactory	N/a
Borrower Performance	Moderately Satisfactory	N/a
Government Performance	Moderately Satisfactory	N/a
Implementing Agency	Moderately Satisfactory	N/a
Icr Quality	Satisfactory	N/a
M&e Quality	Substantial	N/a

Results Framework

PROJECT DEVELOPMENT OBJECTIVE INDICATORS

INDICATOR		BASELINE	CURRENT	TARGET

Increased percentage of taxpayers awareness on tax education programs	Value	46%	94%	60%
	Date	June 30, 2006	June 30, 2011	September 30, 2011
	Comment		From Large taxpayer perception survey; new survey was done end 2010 (every two years). TRA has made tremendous efforts toeducatethe public and has also established, taxpayer service centers	previous end target was for end program (30 June 13) and therefore incorrect

Increase in percentage of written enquiries attended to within seven days Value To be determined 79% 90%
Date June 30, 2006 June 30, 2011 September 30, 2011
Comment baseline in 2006 was 46% (needs to be input)

Total tax revenue collected by TRA (for domestic reveneu) as a percentage of its annual revenue target for:(i) Direct taxes(ii) Inidrect taxes	Value	107	100	100
	Date	July 1, 2008	June 30, 2011	September 30, 2011
	Comment		collection for first three months in FY12. Last FY, it was 95%, although revenue increased more than 15% over previous year

Reduce level of perceived corruption index	Value	15.1%	not available; this indicator should be removed.	30%
	Date	June 30, 2006	June 30, 2011	September 30, 2011
	Comment		the survey is only undertaken annually, should have info in November 2010 but it is not available.

Average time taken to clear goods at: (a) DSM Port; and (b) Airports	Value	(a) At DSM Port: 14 daysmin.; (b) At Airports: 6 d	12.05.0	a) At DSM Port: 12 days (b) At Airports: 5 days
	Date	June 30, 2006	June 30, 2011	September 30, 2011
	Comment		despite implementing customs strategy, fell short of target. Concrete steps are ongoing: Implementation of Customs Valuation DB;Asycuda ++ through internet and implement ASYBANK; development of customs automated cargo management system; introduction of newcustoms clearance system.	previous end target was for end program (30 June 13) and therefore incorrect

INTERMEDIATE RESULTS INDICATORS

INDICATOR		BASELINE	CURRENT	TARGET

Average number of days to identify stop-filers (Domestic Revenue)(i) Direct taxes;(ii) Inidrect taxes	Value	(i) 14 days; (ii) 5 days	14 days;5 days	(i) 10 days; (ii) 5 days
	Date	June 30, 2006	June 30, 2011	September 30, 2011
	Comment		no change; target is (i) 10 days and (ii) 5 days (Indirect has met target)

(i) Number of TIN registered tax payers;(ii) Number of VAT registered taxpayers.	Value	(i) 288,680 taxpayers; (ii) 6,154 taxpayers	(i) 845,737 taxpayers;(ii) 16,848 taxpayers	(i) 674,442 taxpayers; (ii) 14,797 taxpayers
	Date	June 30, 2006	June 30, 2011	September 30, 2011
	Comment		substantial increase in the number of registered taxpayers, surpassed target substantially.	previous end target was for end program (30 June 13) and therefore incorrect

Percentage of VAT refunds made within one month (DRD)	Value	62%	80%	90%
	Date	June 30, 2006	June 30, 2011	September 30, 2011
	Comment		Refund payment efficiency has dropped both in LTD and DRD. In DRD the percentage of refunds made within a month now is 80%compared to a 90% performance last FY	previous end target was for end program (30 June 13) and therefore incorrect

Percentage of customs clearances made within 24 hours at:(i) DSM Port;(ii) Aiprorts	Value	(i) DSM Port 95% (ii) Airport 88%	(i) DSM port 43%(ii) airport 73%	(i) 70% (ii) 95%
	Date	June 30, 2006	June 30, 2011	September 30, 2011
	Comment		Deterioration in customs clearances in both port and airport and well short of end of project target. It is important that TRAcontinue to implement recommendations of time release study.	previous end target was for end program (30 June 13) and therefore incorrect

Amount of previous year's arrears collected to total amount of tax arrears at beginning of the year (Domestic Revenue Dept)(i) domestic revenue	Value	(i) 116%	10%	(i) 65%
	Date	June 30, 2006	March 30, 2011	September 30, 2011
	Comment		Issue of disputes. Taxpayers seem to delay by filing a complaint

Average number of days to identify stop-filers (Large Taxpayers Dept) Value 5 days 3 days 3 days
Date June 30, 2006 June 30, 2011 September 30, 2011
Comment No change over last ISM

Total revenue realized from audits as a percentage of revenue collected (domestic revenue department)	Value	17%	9%	10%
	Date	June 30, 2006	June 30, 2011	September 30, 2011
	Comment		last ISM was report as 12% but current documents indicate that it was actually 9%, (TRA Small & Medium Taxpayer Perception SurveyConducted in April 09)

Increase in percentage of written enquiries attended to within seven days	Value	To be determined	79%	90%
	Date	June 30, 2006	June 30, 2011	September 30, 2011
	Comment		baseline in 2006 was 46% (needs to be input)

Average number of days to identify stop-filers (Large Taxpayers Dept)	Value	5 days	3 days	3 days
	Date	June 30, 2006	June 30, 2011	September 30, 2011
	Comment		No change over last ISM