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  1. What We Do

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...

* The project abstract is drawn from the PAD, SAR or PGD and may not accurately reflect the project's current nature

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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

  • P100314

  • Closed

  • Sherri Ellen Archondo

  • N/A

  • Tanzania

  • May 11, 2006

  • (as of board presentation)

    June 15, 2006

  • November 28, 2006

  • US$ 31.60 million

  • C

  • Not Applicable

  • September 30, 2011

  • Bank Approved

  • January 15, 2013

  • Notes

Sectors

Created with Highstock 5.0.14FY17 - Central Government(Central Agencies)FY17 - Central Government (Central Agencies)

Themes

Project Map

Interactive Map

Finances

Financing Plan (US$ Millions)

No data available.
Financier Commitments
Borrower/Recipient 2.00
DENMARK: Danish Intl. Dev. Assistance (DANIDA) 8.00
IDA Credit 12.00
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 October 31, 2025

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No data available.
Financier Approval Date Closing Date Principal Disbursed Repayments Interest, Charges & Fees

Detailed Financial Activity as of October 31, 2025

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No data available.
Period Financier Transaction Type Amount (US$)
Footnotes

Ratings

IMPLEMENTATION RATINGS

Name Review Date
Counterpart Funding 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
Procurement Satisfactory 2011-11-04
Progress towards achievement of PDO Moderately Satisfactory 2011-11-04
Project Management Highly Satisfactory 2011-11-04

COMPLETION RATINGS

INDICATORIMPLEMENTATION COMPLETION & RESULTS REPORT: 04-13-2012
Outcomes
Risk to Development OutcomeSubstantial
Bank Performance
Borrower Performance
Government Performance
Implementing Agency

INDEPENDENT EVALUATION RATINGS

INDICATORICR REVIEW: 11-09-2012PROJECT PERFORMANCE ASSESSMENT REPORT:
Outcome RatingModerately Satisfactory N/a
Risk To Development OutcomeModerateN/a
Bank PerformanceModerately SatisfactoryN/a
Borrower PerformanceModerately SatisfactoryN/a
Government PerformanceModerately SatisfactoryN/a
Implementing AgencyModerately SatisfactoryN/a
Icr QualitySatisfactoryN/a
M&e QualitySubstantialN/a

Results Framework

PROJECT DEVELOPMENT OBJECTIVE INDICATORS

INDICATORBASELINECURRENTTARGET
  • Average time taken to clear goods at: (a) DSM Port; and (b) AirportsValue(a) At DSM Port: 14 daysmin.; (b) At Airports: 6 d12.05.0a) At DSM Port: 12 days (b) At Airports: 5 days
    DateJune 30, 2006June 30, 2011September 30, 2011
    Commentdespite 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
  • Increase in percentage of written enquiries attended to within seven daysValueTo be determined79%90%
    DateJune 30, 2006June 30, 2011September 30, 2011
    Commentbaseline in 2006 was 46% (needs to be input)
  • Increased percentage of taxpayers awareness on tax education programsValue46%94%60%
    DateJune 30, 2006June 30, 2011September 30, 2011
    CommentFrom 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 centersprevious end target was for end program (30 June 13) and therefore incorrect
  • Reduce level of perceived corruption indexValue15.1%not available; this indicator should be removed.30%
    DateJune 30, 2006June 30, 2011September 30, 2011
    Commentthe survey is only undertaken annually, should have info in November 2010 but it is not available.
  • Total tax revenue collected by TRA (for domestic reveneu) as a percentage of its annual revenue target for:(i) Direct taxes(ii) Inidrect taxesValue107100100
    DateJuly 1, 2008June 30, 2011September 30, 2011
    Commentcollection for first three months in FY12. Last FY, it was 95%, although revenue increased more than 15% over previous year

INTERMEDIATE RESULTS INDICATORS

INDICATORBASELINECURRENTTARGET
  • (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
    DateJune 30, 2006June 30, 2011September 30, 2011
    Commentsubstantial increase in the number of registered taxpayers, surpassed target substantially.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 revenueValue(i) 116%10%(i) 65%
    DateJune 30, 2006March 30, 2011September 30, 2011
    CommentIssue of disputes. Taxpayers seem to delay by filing a complaint
  • Average number of days to identify stop-filers (Domestic Revenue)(i) Direct taxes;(ii) Inidrect taxesValue(i) 14 days; (ii) 5 days14 days;5 days(i) 10 days; (ii) 5 days
    DateJune 30, 2006June 30, 2011September 30, 2011
    Commentno change; target is (i) 10 days and (ii) 5 days (Indirect has met target)
  • Average number of days to identify stop-filers (Large Taxpayers Dept)Value5 days3 days3 days
    DateJune 30, 2006June 30, 2011September 30, 2011
    CommentNo change over last ISM
  • Percentage of VAT refunds made within one month (DRD)Value62%80%90%
    DateJune 30, 2006June 30, 2011September 30, 2011
    CommentRefund 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 FYprevious 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) AiprortsValue(i) DSM Port 95% (ii) Airport 88%(i) DSM port 43%(ii) airport 73%(i) 70% (ii) 95%
    DateJune 30, 2006June 30, 2011September 30, 2011
    CommentDeterioration 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
  • Total revenue realized from audits as a percentage of revenue collected (domestic revenue department)Value17%9%10%
    DateJune 30, 2006June 30, 2011September 30, 2011
    Commentlast ISM was report as 12% but current documents indicate that it was actually 9%, (TRA Small & Medium Taxpayer Perception SurveyConducted in April 09)