Evaluation of the board of revenue assistance project

Special evaluation covers the period 6/83-3/85 and is based on interviews with BOR and other Government of Jamaica (GOJ) officials and with staff of Syracuse University (SU) and USAID/J. The project has gone smoothly and successfully to date. SU, working in close collaboration with GOJ economists, has completed planned analyses of the personal income tax; tax and investment incentives; and foreign trade and domestic indirect, property, and bauxite/alumina taxation and is currently pursuing studies of public enterprises, taxation of corporations and financial institutions, the incidence of taxation, and tax burdens on low-income families. SU has also helped the BOR make substantial progress in tax administration training, revenue forecasting, and collections computerization, although progress has been slowed by delays in passing the Revenue Administration Bill and by procurement problems. An SU working paper on tax reform - presented at a 1/85 conference and revised in light of GOJ remarks - is currently before the Prime Minister, however, and it is expected that the GOJ's program for comprehensive tax reform will be submitted to Parliament for passage in 6/86. Passing the Revenue Administration Bill and ensuring BOR capability to administer it effectively will be the more difficult phase, however, particularly given increased fiscal pressures (recent economic setbacks have included substantial currency depreciation, gasoline price increases with related civic discontent and resulting tourism losses, closings in the alumina industry, and International Monetary Fund adjustments, and revenue losses projected for FY1985-86 may necessitate non-bauxite/alumina and non-tourism tax increases), which have in turn generated political pressure from the opposition. A key project strength has been a close SU/BOR working relationship. SU must remain flexible to respond to BOR's needs (particularly strengthening revenue forecasting capability) which are expected to change with the political process. It is recommended that SU hold a workshop with GOJ personnel in 5/85 to develop a work plan for the remainder of the project.