Result Based Management Framework - METAC

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During the past two years, some progress was made in implementing FAD and METAC
recommendations with regard to establishing a unified tax administration. In this respect
the MOF has appointed one head for both VAT and Revenue directorates and has
launched the integration process. Preparations are underway to harmonize systems and
procedures and finalize the draft law establishing the single tax administration.
In addition to supporting the tax administration, METAC is deploying its assistance to
another major revenue agency, the customs administration. Lebanon imports a sizable
share of consumer goods, about 80 percent of total consumption. Taxes on international
trade contribute significantly to the government revenues. In terms of VAT, the principal
share of revenue (more than 70 percent) is collected by customs at the stage of importing.
A first METAC activity was delivered in September 2011. It performed a high-level
review of the current status of customs modernization, provided technical advice in
relevant operational areas, and assessed needs going forward. Subsequently two focused
TA missions were delivered in July 2012 and 2013. The first visit addressed risk
management; it aimed at strengthening the work of the central Risk Management Unit
(RMU), designing appropriate risk parameters and schemes that would improve targeting
and selectivity, establishing an effective monitoring framework, and streamlining the risk
management procedures. The second visit built on the foundation established in 2011 and
2012 and provided practical measures that can be taken to move modernization forward
with respect to valuation, risk management, post-clearance audit and increasing the level
of integrity in customs.
Objectives
Work Program
The medium TA strategy aims at supporting pressing reforms in key areas of tax and
customs administration. The main objective remains the establishment of an integrated
function-based HQ with a performing network of offices to move ahead with
strengthening revenue collection and arrears management.
Going forward, METAC will continue to strongly support the modernization plans of
Lebanon towards improving revenue performance. TA will focus on key components in
tax and customs reforms that should strengthen operations’ delivery and increase
compliance rates.
In tax administration, priority in TA delivery will be directed to: (1) the establishment of
a new unified tax administration across all types of taxes; (2) the strengthening of the
operations at the LTO; (3) the development of segment-based compliance and