Current state of the State Tax Service, results of reforms carried out and key areas of further cooperation were discussed by acting Head of the State Tax Service Yurii Koniushenko with representatives of the International Monetary Fund and the World Bank, led by the Chief Economist of the Tax Administration Division of the IMF’s Tax and Budget Department Enrico Aav and the Senior Economist of the World Bank Jan Loeprick.

As acting Head of the State Tax Service noted, priority task of the Service is effective implementation of tax policy through a high-quality administration.

“We must ensure stable and predictable revenues to the state budget. Resources are critically needed to protect our state. To do this, we must continue to work on improving tax administration and increasing level of voluntary compliance” – Yurii Koniushenko emphasized.

One of the important areas of transformation remains tax risk management system. Draft project was completed in July, results of which were submitted to the Government for a decision on the further functioning of the system.

The next step should be to scale up application of the risk-based approach in work of the State Tax Service – from better risk identification to effective allocation of control resources.

Also, the State Tax Service, with expert support from the IMF, continues to work on the new system of performance indicators. Not only the fiscal result will be assessed, but also compliance level, quality of administration and services, audit efficiency, work with personnel and transparency. Separate block is digital transformation and work with data. The IMF recommendations were taken into account for updating the State Tax Service’s Digital Development Plan until 2030, which provides for process automation, development of digital services, payer segmentation and risk-based compliance management. International partners consider implementation of the plan to be the anchor for reforming the Service. 

As acting Head of the State Tax Service noted, the CRM, digitalization, data work, audit, international information exchange and development of institutional capacity should be components of a single model of transformation of the Service.

“State Tax Service is interested in continuing systematic work with the IMF and the World Bank on development of the tax system and determined course of reforms remains unchanged” – concluded acting Head of the Service.

Important task remains coordination of support from the IMF, World Bank and other international partners around common priorities – building modern and effective tax administration system.