Result Based Management Framework - METAC

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Risks/Assumptions
The authorities face major challenges in the fiscal area, mainly as a result of recent
political and economic developments in the region. These developments may impede the
implementation of a comprehensive PFM reform agenda.
Capacity constraints in the GBD and in the MOF continue to be a major obstacle to the
development of a strong policy-led medium-term budget planning process.
Achieving better integration between policy, program planning and budgeting processes
and better coordination between the lead agencies involved continues to prove
challenging.
D. Revenue Administration
Past Activities
Until 2003, revenue administration in Jordan was organized by tax type, with three
departments reporting to the minister of finance for customs, income tax, and sales tax.
Jordan has received considerable TA from the Fund during the past years, beginning with
an FAD mission in 2003 that set out a reform strategy to integrate direct and indirect tax
administration, which included establishing a unified, function-based tax administration
reporting to the minister of finance, with a separate organization for customs and taxpayer
segmentation through large and medium taxpayer administrations. Key features proposed
for the Income and Sales Tax Department (ISTD) included: (1) a functionally structured
HQ; (2) establishment of an LTO in Amman; (3) creation of integrated MTOs, emulating
the LTO model; and (4) design of simplified procedures and a rationalized office network
for small taxpayers.
These major reforms were, with support of short term TA from FAD and METAC,
progressively implemented in quick succession:
Integration of the direct and indirect administrations within the new ISTD during
the period of 2003-2004.
Establishment of the LTO in October 2004.
Launching of three MTOs in September 2006.
After this promising start, reform implementation lost speed and momentum. Since 2007,
METAC has been the main TA provider within the Fund and has organized several tax
administration expert visits to assist in strengthening the ISTD HQ and develop audit and
collection strategies. HQ of ISTD remains partly developed, audit strategies are deficient,
self-assessment is not fully implemented and there is now a general need to reinvigorate