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International Monetary Fund. Fiscal Affairs Dept.

Albania is formulating a Medium-Term Revenue Strategy (MTRS) with IMF support. The decision to commit to the development of an MTRS was taken against the background of revenue persistently falling short of budget projections, revenue continuing to lag behind regional peers in tax to Gross Domestic Product (GDP) ratios and the Government’s assessment that an increase of revenue of 2.2 – 3.0 percent of GDP will be required to finance its additional spending needs over the next five years.

Stoyan E Markov, Fadia B Sakr, and Patrick De Mets

The Egyptian Tax Administration (ETA) is undergoing a significant transformation within the framework of the MTRS. This summary provides an overview of ETA's progress in implementing the MTRS tax administration initiatives and highlights priority areas for future action. The report focused on key considerations to maintain reform momentum in tax administration under the MTRS in the areas of governance arrangements, organizational structure, human resource management, digitalization, and risk management. The report also contains a mid-term capacity development plan with identified priority areas to further support implementation of the MTRS in the area of tax administration.

International Monetary Fund. Fiscal Affairs Dept.

This paper presents the results of applying the Revenue Administration Gap Analysis Program – Value-Added Tax (RA-GAP VAT) gap estimation methodology to Belgium for the period 2011-2021. The RAGAP methodology employs a top-down approach for estimating the potential VAT base, using statistical data on value-added generated in each sector. VAT collections have, on average, remained relatively stable in real terms over the period 2011 through 2021, the period under review for this report, at around 7 percent of gross domestic product (GDP). Like the VAT revenues, the compliance gap, as a percent of GDP, has appeared to be largely stable over the period 2011 to 2021 at around 2 percent of GDP. The compliance gap appears to be largely concentrated in the Professional and Managerial Services sector. The results on the distribution of the compliance gap by sector are not to be considered definitive, only suggestive, and so further analysis needs to be conducted to corroborate or refute these findings and to find possible causes for the noncompliance in these sectors.

Patricio A Barra, Mr. Eric Hutton, and Polina Prokof'yeva

This technical note describes bottom-up CIT gap estimation techniques applied by revenue administrations in the following highly experienced countries in this approach: Australia, Brazil, Canada, Denmark, Sweden, the United Kingdom, and the United States. The main topics included in the descriptions are techniques applied, CIT gap results, advantages and disadvantages of different available options, and future developments and recommendations for any revenue administration interested in starting bottom-up CIT gap estimation programs having no prior experience.

Mrs. Andrea Lemgruber, Mr. Andrew R Masters, and Mr. Duncan Cleary
During the past few years, the Fiscal Affairs Department (FAD) has developed the Revenue Administration Fiscal Information Tool (RA-FIT), a tax and customs data gathering initiative. This paper, the first of its kind internationally given the number of countries covered, analyzes the results of the first round of RA-FIT data for 85 countries. It begins the process of making summarized cross-country information available to revenue administrations, in particular in developing economies, to help them improve their performance. Topics covered include performance measurement, institutional arrangements, and core operations of tax and customs administration. RA-FIT is in its second round of data gathering, now via an online portal; these data will be analyzed and in future made available to participating countries and technical assistance partners/donors through an online dissemination platform.