Predictable and transparent Tax Administration System in Chisinau Municipality MD2002

Tender description

The project aims to provide the Chisinau Municipality (Mayor's Office) with tools to improve the current tax administration system, which will reflect best international practices. These will facilitate better payment of taxes, mitigation against tax avoidance and prevention of tax evasion generating additional revenue mobilisation and collection in the Chisinau municipality. The increased proceeds from the tax will be used to benefit businesses and individuals, including women and vulnerable people (with a special focus on low income households) in Chisinau, creating better prospects for sustainable and inclusive economic development and growth with a plan to expand this framework to all local taxes administered by the Chisinau municipality as part of future projects under the GGF MF. The project will be implemented in two stages, structured around 2 workstreams, namely: 1) Review of the current tax administration framework and tax rates in Chisinau municipality, 2) Reengineering of three existing local taxes, elaboration of the implementation mechanism for other two local taxes which are foreseen by the existing tax legal framework, but were never collected by the Chisinau municipality and development of the feasibility study for two taxes that are completely new for Moldovan municipalities, in order to improve the quality of their administration and coverage, as well as increase revenue to the local budget. This stage will also produce an Action plan to expand the elaborated methodologies to all local taxes administered by the Chisinau Municipality. The current intervention will respond to one of Moldova's key development priorities - institutional reforms and improvements in efficiency of LPAs, including their ability to mobilise revenue in a fair and transparent manner. The project will help establish a clearer, more transparent, and business-friendly local tax framework in Chisinau, which will increase revenue. This project will provide technical analysis of the Chisinau LPA tax administration. Three local taxes and two new taxes will be selected, and a calculation methodology (including 'Do no Harm' and GESI considerations) will be provided along with recommendations based on best practices surrounding transparent tax administration.