Result Based Management Framework - METAC

88
A major revenue administration restructuring project was being considered before the
security situation deteriorated in 2006. This deteriorating situation resulted in closures
preventing the movement of people and goods between cities and virtually destroyed the
West Bank and Gaza economy.
Prior to 2010, METAC did not conduct any activity in West Bank and Gaza in the area of
revenue administration. This situation has changed recently, with METAC organizing two
TA missions in 2010-2011, as well as assisting Palestinian officials with visiting tax
administrations in Cairo and Beirut to benefit from their experience in implementing
automated tax systems.
The first METAC TA provided in 2010 aimed at supporting the launching of a new
revenue administration reform project “Al-Siyada”, through: (i) reviewing the latest
developments in the implementation and administration of the tax reforms; (ii) assessing
whether the modernization program of the tax authority is being implemented in line with
the 2003 FAD recommendations; (iii) providing advice and input to the authorities and
consultants on the tax administration reform intentions under the Al Siyada project; and
(iv) assessing the needs of the tax authority in terms of TA so as to support the
implementation of the reforms’ components.
The second METAC TA was provided in 2011 based on the recommendations of the
October 2010 FAD diagnostic review on tax and customs, which led to a three-year
reform strategy. This METAC TA aimed at assisting the tax administration in the area of
IT. It recommended an IT modernization strategy covering short and long terms’ needs,
including an interim plan to improve current computer system and automate core business
processes until the acquisition of the new ITAS is completed.
The October 2011 FAD follow-up mission laid out a plan to implement the first stage of
modernization of the Palestinian tax administration, based on the framework for longterm
reform outlined in the October 2010 FAD mission’s recommendations. A set of
measures requiring TA was recommended – using LTO as a first recipient for change.
However, there has been no progress in achieving the recommended structural measures,
notably with respect to the organizational reform in the LTO.
Objectives
Work Program
An important priority is the establishment of an LTO that will be used as a driver for
change and a pilot for reforms. Key measures will be contingent on achieving this
milestone, entailing strengthening organizational arrangements, establishing integrated