TAX REVENUE POTENTIAL STUDY AND GAP ANALYSIS ON MAJOR SOURCES OF REVENUE

Source: World Bank — Public Sector Capacity Building Program Support Project

PUBLIC SECTOR CAPACITY BUILDING PROGRAM (PSCAP)

CONSULTING SERVICES

Credit No.4669-ET

Reference No: - TSRP/C-11/01

This request for expression of interest follows the general procurement notice for this project that appeared in Development Business No. 800 of 16 June 2011.

The Federal Democratic Republic of Ethiopia has received a credit from the International Development Association (IDA) toward the cost of Public Sector Capacity Building Project and intends to apply part of the proceeds of this credit to payments under the contract for consultancy services for Revenue Sector Reform Program.

The consulting services include provision of consulting services to conduct  Tax  Revenue Potential Study and Gap analysis on major sources of revenue(such as business income tax, personal income tax, VAT, excise tax, custom duty, TOT, etc., ) at the national level (including Regional &City administrations) i.e.:

• Review the specific taxes under each of the specific tax laws and rates;
• Identify the scope of the various sources of tax revenues and  potential taxable activities/areas;
• Measure the revenue productivity of  each tax type by using tax buoyancy/tax elasticity;
• Identify the tax gap by each tax category and overall revenue potential and gap analysis;
• Conduct revenue potential analysis using appropriate models; conduct revenue estimation using data of 5-10 years to test fitness of the constructed model and  conduct revenue  forecast for about  5-10 years;
• Propose best methods of tax assessment, collection and  auditing which enables to raise  optimal revenue from each tax sources;
• Recommend administrative and policy measures that help for effective revenue mobilization and reduce the tax gap.

The Ethiopian Revenues and Customs Authority (ERCA) now invites eligible consultants to indicate their interest in providing the services. Interested consultants should provide information indicating that theyhave the required qualification to perform the Services.  The short listing criteria are: , Core business and years in business; qualifications in the field of the assignment, technical and managerial organization of the firm, general qualifications and number of key staff.

The attention of interested Consultants is drawn to paragraph 1.9 of the World Bank's Guidelines: Selection and Employment of Consultants under IBRD Loans and IDA Credits & Grants by World Bank Borrowers "Consultant Guidelines", setting forth the World Bank's policy on conflict of interest.

Consultants may associate with other firms in the form of a joint venture or a subconsultancy to enhance their qualifications.

A Consultant will be selected in accordance with the [insert selection method] method set out in the Consultant Guidelines.

Interested consultants may obtain further information during office hours from 8:00a.m -12:00am (local time) in the morning and 1:00pm-5:00pm (local time) in the afternoon.

 at the address below:

Expression of interest must be delivered to the address below on  or before 13 December 2011 at 5:00 pm (local time).

           Ethiopian Revenues and Customs Authority

           Procurement Team

    3^rd Floor Room No. 301

           Contact Person, Sisai Tessema /Teklewold Temesgen

           Tel: 011-662-98-70

          Fax: 011-6-62-98-73

          E-mail: sisaitessema@yahoo.com/ teklish07@yahoo.com