Azerbaijan : Strengthening Tax Policy and Administration Capacity
The proposed knowledge and support technical assistance (TA) will assist the Ministry of Taxes (MOT) and the Ministry of Finance (MOF) of the Republic of Azerbaijan to strengthen tax revenue administration and policy analysis capacity to mobilize domestic resources to lessen fiscal dependence on oil revenues. The TA will provide services and operational support to help both ministries design tax administration and policy reforms. The proposed coverage areas are: (i) human resource management; (ii) taxpayer compliance; and (iii) tax revenue analysis and modeling. The TA will also provide support on capacity development plans.
Project Details
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Project Officer
Miyaki, Yuji
Central and West Asia Department
Request for information -
Country/Economy
Azerbaijan -
Sector
- Public sector management
| Project Name | Strengthening Tax Policy and Administration Capacity | ||||||
| Project Number | 53105-001 | ||||||
| Country / Economy | Azerbaijan |
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| Project Status | Active | ||||||
| Project Type / Modality of Assistance | Technical Assistance |
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| Source of Funding / Amount |
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| Operational Priorities | OP2: Accelerating progress in gender equality OP3: Tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability OP6: Strengthening governance and institutional capacity OP7: Fostering regional cooperation and integration |
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| Sector / Subsector | Public sector management / Public administration |
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| Gender | Some gender elements | ||||||
| Description | The proposed knowledge and support technical assistance (TA) will assist the Ministry of Taxes (MOT) and the Ministry of Finance (MOF) of the Republic of Azerbaijan to strengthen tax revenue administration and policy analysis capacity to mobilize domestic resources to lessen fiscal dependence on oil revenues. The TA will provide services and operational support to help both ministries design tax administration and policy reforms. The proposed coverage areas are: (i) human resource management; (ii) taxpayer compliance; and (iii) tax revenue analysis and modeling. The TA will also provide support on capacity development plans. | ||||||
| Project Rationale and Linkage to Country/Regional Strategy | Recent tax revenue performance. Tax revenues in Azerbaijan as a percentage of gross domestic product fell to 9.3% in 2018 from 9.9% in 2017 and 11.6% in 2016 which is lower than that of comparative countries in the Central and West Asia19.8% for Kyrgyz Republic and 25.7% for Georgia in 2017, 17.3% average for Asia and the Pacific. The state budget has become highly dependent on transfers from the State Oil Fund of the Republic of Azerbaijan (SOFAZ). In 2013, AZN11.35 billion (58.2% of state budget revenues) were transferred from SOFAZ to the state budget, and AZN6.10 billion (36.9% of state budget revenues) in 2017. Reliance on oil revenues to support the state budget has made the economy vulnerable to external shocks. Recognizing this problem, the government has focused on strengthening tax policy and administration capacity in non-oil sectors and has implemented several tax reforms including the introduction of an advance tax ruling concept, the concept of voluntary tax disclosure, modification of value-added tax (VAT) rules, and promotion of cashless payments. | ||||||
| Impact | Non-oil fiscal position improved (Strategic Roadmap of National Economic Perspectives) |
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| Project Outcome | |
|---|---|
| Description of Outcome | Strengthened tax policy and compliance administration |
| Progress Toward Outcome | |
| Implementation Progress | |
| Description of Project Outputs | Human resource and organizational performance management strengthened. Taxpayer services improved Taxpayer compliance improved by dealing more effectively with serious incidents of non-compliance Fiscal management enhanced through improved fiscal modeling |
| Status of Implementation Progress (Outputs, Activities, and Issues) | The COVID-19 pandemic has slowed down activities. Knowledge events via virtual workshops and e-learning modules are being developed. |
| Geographical Location | Nation-wide |
| Summary of Environmental and Social Aspects | |
|---|---|
| Environmental Aspects | |
| Involuntary Resettlement | |
| Indigenous Peoples | |
| Stakeholder Communication, Participation, and Consultation | |
| During Project Design | |
| During Project Implementation | |
| Business Opportunities | |
|---|---|
| Consulting Services | The TA will require five international consultants (13 person-months in total) and one national consultant (9 person-months).ADB will engage the consultants following the ADB Procurement Policy (2017, as amended from time to time) and its associated staff instructions. |
| Procurement | No procurement envisaged for this TA. |
| Responsible ADB Officer | Miyaki, Yuji |
| Responsible ADB Department | Central and West Asia Department |
| Responsible ADB Division | Public Management, Financial Sector and Trade Division, CWRD |
| Executing Agencies |
The Ministry of Taxes of Azerbaijan Republic |
| Timetable | |
|---|---|
| Concept Clearance | 30 May 2019 |
| Fact Finding | 17 Jul 2019 to 24 Jul 2019 |
| MRM | - |
| Approval | 10 Sep 2019 |
| Last Review Mission | - |
| Last PDS Update | 22 Jun 2021 |
TA 9799-AZE
| Milestones | |||||
|---|---|---|---|---|---|
| Approval | Signing Date | Effectivity Date | Closing | ||
| Original | Revised | Actual | |||
| 10 Sep 2019 | 23 Oct 2019 | 23 Oct 2019 | 31 Aug 2021 | 30 Sep 2023 | - |
| Financing Plan/TA Utilization | Cumulative Disbursements | |||||||
|---|---|---|---|---|---|---|---|---|
| ADB | Cofinancing | Counterpart | Total | Date | Amount | |||
| Gov | Beneficiaries | Project Sponsor | Others | |||||
| 100,000.00 | 500,000.00 | 0.00 | 0.00 | 0.00 | 0.00 | 600,000.00 | 07 Mar 2023 | 270,535.99 |
Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.
The Access to Information Policy (AIP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.
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| Title | Document Type | Document Date |
|---|---|---|
| Strengthening Tax Policy and Administration Capacity: Technical Assistance Report | Technical Assistance Reports | Sep 2019 |
Safeguard Documents See also: Safeguards
Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.
None currently available.
Evaluation Documents See also: Independent Evaluation
None currently available.
Related Publications
None currently available.
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Tenders
| Tender Title | Type | Status | Posting Date | Deadline |
|---|---|---|---|---|
| Human Resource Management Specialist (Intl) | Individual - Consulting | Closed | ||
| Strengthening Tax Policy and Administration Capacity - Tax Specialist (International) | Individual - Consulting | Closed | ||
| Tax Administration and Coordination Specialist (Natl) | Individual - Consulting | Closed | ||
| Tax Administration and Taxpayer Service Specialist/Team Leader (Intl) | Individual - Consulting | Closed | ||
| Tax Arrears Management and Collection Specialist (Intl) | Individual - Consulting | Closed | ||
| Tax Audit Specialist (Intl) | Individual - Consulting | Closed | ||
| Tax Policy Specialist (Intl) | Individual - Consulting | Closed | ||
| Taxpayer Advocate and Taxpayer Service Specialist (Intl) | Individual - Consulting | Closed |
Contracts Awarded
Procurement Plan
None currently available.