Modernization of Customs, Excise and Value Added Tax Areas ...

applicability of procedures and regulations; and (iv) establishment of apermanent planning system in order to increase productivity through betterplanning.Specifically, the programme seeks (i) to facilitate import and export trade and strengthenthe Customs Administration by harmonizing and simplifying current procedures,improving the audit capacity and the institutional abilities to prevent and fighttransnational crime and its negative consequences; (ii) to improve compliance with theVAT and Excise Tax obligation through the modernization of the main administrativeprocesses, especially those corresponding to tax collection and audit; (iii) to strengthenthe Department’s institutional management capacity through the improvement ofadministrative processes and the implementation of mechanisms for the integration andstrengthening of support systems (planning, internal control and human resourcesmanagement).Apart from improving the collection of customs revenue, the programme also seeks toreduce the average clearance time for imports and exports; a reduction in VAT arrears; areduction in filing late returns, electronic filing of VAT returns, a reduction in the time toprocess VAT refunds, and a reduction in the operational costs for the Excise Division.The total cost of the programme is estimated at $11 million of which $8.8 million will befinanced by the Bank as a reimbursable loan. The Government of Barbados willcontribute $2.2 million. Given the scope of the project, the technical execution whichcommenced in January of this year is estimated to be completed in 42 months.In order to effectively manage the program a structure consisting of a SteeringCommittee, Project Coordinating Unit and four working teams at the level of beneficiaryunits has been established. The responsibility of the Steering Committee is to givestrategic and policy directives on the project. The Committee comprises representativesfrom the Customs and Excise Department, the Ministry of Finance, the AuditDepartment, Data Processing Department, Statistical Services, Accountant General’s