Project assistance completion report [: The Revenue Board assistance project]

The project was generally successful. The tax system was simplified and made more equitable, the base of many taxes was significantly broadened, applicable tax rates were lowered, and a system of incentives conducive to export-oriented growth was put in place. As a result of the reduced rates and the introduction of the exemption threshold of J$8,580 per annum for individuals, tax savings were available to individuals and companies, but even so, there was no revenue loss; in fact, tax revenues, as a share of GDP, rose after the reform. The broadening of the tax base was achieved as a consequence of the introduction of the General Consumption Tax. Other accomplishments include establishment of the Revenue Board's Training Center, training of 100 Revenue Agents, and skills upgrading of over 4,000 Revenue Services staff. Additionally, efficiency has improved due to computerization and modernization of procedures. On the negative side, reform of company and property taxes was less successful due to persistent structural problems; payroll taxation has not been reformed; tax compliance rates are still very low; and the computerization program fell short of expectation. Key lessons learned are follows. (1) With help from local experts, the GOJ is capable of fulfilling Revenue Services' training needs. (2) In order for a project to be successfully implemented, the required resources must not only be committed but should be available on demand. (3) In order to effectively implement far-reaching tax policy and tax structure changes, administrative capability should be simultaneously developed.