Technical assistance for the Central Tax Administration, Phase II
Burkina Faso is fighting against poverty and social inequality. Increased transparency and better domestic revenue mobilization help in dealing with those challenges. Additional resources – coming from a more efficient tax administration – allow the country to develop further while reducing external dependence. SECO funded a first phase of the project to the Central Tax Administration (2009-2014). The encouraging results obtained, also with regard to the fight against corruption, have allowed planning for a second phase to ensure sustainability of the progress made. Many crucial lessons have been learned. This allows to tackle this project with confidence in a context of political renewal and economic challenges in Burkina Faso.
Wirtschafts- und Finanzpolitik
|Hintergrund||SECO is a long-standing partner of Burkina Faso in terms of general budget support. The aid, which constitutes a contribution to the implementation of the national strategy to fight against poverty and social inequality, is accompanied by technical assistance in the area of public finances. Back in 2010, the government adopted a new development framework, the Accelerated Growth and Sustainable Development Strategy (SCADD). For its implementation, the low level of mobilization of domestic revenue was perceived as a major obstacle to deal with. This has therefore led SECO to design in 2009 a bilateral program to the Ministry of Economy and Finance, specifically the Central Tax Administration (DGI). This intervention helped to computerize and reorganize collection procedures and tax management that was so far essentially performed manually. This development has generated transparency in a generally opaque area to citizens. It also enabled a more effective fight against corruption and facilitated the payment of taxes by the population concerned. The internal management of tax offices has also been modernized.|
|Ziele||The program's main objective is to increase the level of mobilization of the country's internal resources by improving the quality and safety of tax revenue collection system. This goal is mainly pursued through improved functionality and key processes related to the utilization of the integrated system of taxation (SINTAX+). A Tax Administration Diagnostic (TADAT) will be conducted in late 2017 to produce tax markers (baselines) for monitoring the results obtained after the intervention.|
|Mittelfristige Wirkungen||Integrity of the registered taxpayer base.Effective risk management.Support given to taxpayers to help them comply.On-time payment of taxes.Accuracy of information reported in tax declarations.Operational Efficiency and Effectiveness of the Directorate General of Taxes.Promotion of Governance at the Directorate General of Taxes.|
Erwartete Resultate: Capacity building and modernization of equipment.Ehancements of the operating environment of SINTAX+.Network Strengthening.Maintenance of equipment.Stabilization of the power supply.
Resultate von früheren Phasen: The implementation of the first phase of the project at the Central Tax Administration has followed national procedures for selection and award of public contracts. This decision was in line with the Paris Declaration on aid effectiveness. In terms of impact the project has contributed to raise the tax to GDP ratio from average of 10% in the period between 2000-2010 to an average of 14.5% between 2010 and 2015. This result is certainly encouraging but still insufficient. In terms of results the project developed an integrated and automated tax management tools (SINTAX+) and an audit tool for integrated business accounting (Fasovizir). It also allowed for the acquisition of computer equipment and provided training for nearly 1,000 users of the new systems. At the level of authorities, it was possible to sustainably strengthen the internal capacities of key staff at the Ministry of Economy and Finance. Tax inspectors have significantly expanded their knowledge and reach, thanks to the newly developed software, allowing them to identify better and more efficiently tax manipulations of all kinds.
|Budget||Laufende Phase Schweizer Beitrag CHF 3'400'000 Bereits ausgegebenes Schweizer Budget CHF 0 Budget inklusive Projektpartner CHF 3'800'000|
|Projektphasen||Phase 3 01.04.2016 - 31.03.2020 (Laufende Phase)|