USAID FISCAL REFORM FOR A STRONG TUNISIA PROJECT QUARTERLY PERFORMANCE REPORT APRIL to JUNE 2018

The project's first quarterly performance report, covering the period from April to June 2018, highlights key achievements and progress made in various areas. The steering committee for the project was established in April 2018, comprising senior officials from the Ministry of Finance (MoF). The committee's first meeting, led by the MoF General Secretary, took place in May 2018, and four working groups were created to implement joint activities between the MoF and the project. The working groups focused on e-services, external data exchange, internal data exchange, and communications. The project's tax administration assistance component aimed to support the MoF in improving the efficiency, transparency, and cost of compliance of tax administration. The project team conducted a Tax Administration Diagnostic Assessment Tool (TADAT) exercise, which involved a thorough analysis of modernization needs using an international best practice methodology. The TADAT report was submitted to the TADAT Secretariat in April 2018, and the project team analyzed the report, determined areas for improvement, and prepared recommendations for a comprehensive compliance strategy. A workshop on the development of a compliance strategy for the Tunisian tax administration was organized in collaboration with the project team and the MoF. The workshop aimed to present the compliance strategy methodology and facilitate discussions to analyze the root causes of tax administration weaknesses. Four working groups focused on items covering the nine performance outcome areas of TADAT, and additional suggestions were made to review and adapt tax administration officers' compensations procedures, performance objectives, and performance evaluation processes. Based on the working groups' outcomes and the TADAT final report, the project presented an action plan to the MoF to implement the compliance strategy. The MoF agreed on the four strategic orientations of the compliance strategy, and the final version was presented for approval to the steering committee meeting on June 26th. The General Secretary of the MoF approved the compliance strategy framework, and a draft detailed 2-year work plan to implement the compliance strategy was sent to the MoF. The project's strategic communications assistance component aimed to support the MoF in improving its communication and outreach efforts. The project team worked with the MoF to develop a practical guide for Tunisian taxpayers and provided capacity building for the MoF's fiscal analysis unit (FAU). The project's administration component ensured the effective management and coordination of project activities. The project team worked closely with the MoF to establish a steering committee and four working groups to implement joint activities. Overall, the project made significant progress in the first quarter, with key achievements including the completion of the TADAT exercise, the development of a compliance strategy, and the presentation of an action plan to the MoF. The project's activities aimed to support the MoF in improving its fiscal management and tax administration systems, ultimately contributing to a stronger and more stable Tunisia.