The Project will assist the government in making the Croatian Tax Administration (CTA) a more efficient, effective, transparent and accountable institution, the statement said..
The modernisation of the revenue administration will provide Croatia with the means of achieving fiscal sustainability, reducing the administrative burden on tax payers by removing structural and institutional weaknesses, and creating capacity within the tax administration for successful EU accession, the World bank said.
"We hope that the successful implementation of the project will not only have an impact on the institutions concerned but that it will also greatly benefit the citizens of Croatia by creating a more efficient, effective, transparent and accountable tax administration system. Further, the implementation of a single tax identification number will provide a basis for improving the targeting of social benefit programs," said Anand Seth, World Bank Country Director for Croatia, Bulgaria and Romania.
The Revenue Administration Modernisation Project consists of four inter-related components. The first component will focus on reorganising and improving the functionality of the CTA"s tax offices in Zagreb, to the benefit of employees and the population as a whole. The second component will build the skills, capacity and integrity of officials, employees and taxpayers through various training activities. The third component will assist the Government with modernising business processes, by improving the efficiency and the effectiveness of the CTA. Technical support will also be provided for the implementation of a taxpayer"s identification number. Finally, the fourth component will provide the necessary support for the efficient management of the tax system"s modernisation, the World Bank said.
The Revenue Administration Modernisation Loan is a fixed-spread loan payable in 15 years, including a five-year grace period.
Since Croatia joined the World Bank in 1993, the organisation has been active in providing financial and technical assistance, policy advice and analytical services to the country. To date, the World Bank has approved 36 loans with a total value of USD2.68 billion, and it has approved 48 grants with a total value of USD51.5 million. All ongoing projects financed by the World Bank have satisfactory ratings, the statement said.