Finance Department, Government of Khyber Pakhtunkhwa

TERMS OF REFERENCE

TAX ECONOMIST

TAX POLICY UNIT

Finance Department, Government of Khyber Pakhtunkhwa

I.BACKGROUND

The Government of Khyber Pakhtunkhwa (GoKP) has set out an ambitious medium-term (5-year) tax reform agenda, which is described in the ‘Khyber Pakhtunkhwa Tax Revenue Mobilization Plan’ (KPIRMAP). One key objective of the agenda is to initiate evidence-based tax analytical studies to enable informed decision-making in tax policy and ensure a tax system that is efficient and fair. A second key objective is to foster effective coordination between the three tax collecting institutions and the FD to move the reform agenda forward. To fulfill these objectives, a new unit called the Tax Policy Unit (TPU) will be established under the administrative control of the FD. The TPU will be tasked with two main functions: (i) mobilize and coordinate all tax policy analysis via outsourced tax experts for the three tax collecting entities – Khyber Pakhtunkhwa Revenue Authority(KPRA), Excise, Taxation and Narcotics Department (ETD), and Board of Revenue (BOR), and (ii) facilitate knowledge-sharing and coordinate the reform implementation groups – Core Reform Group (CRG) and Strategic Reforms Group (SRG).

The GoKP does not currently carry out tax research or analysis, which creates an unstable tax system and hinders a holistic tax policy. Few or no studies have been performed on revenue forecasting, tax compliance gaps, tax expenditure, or impact of tax policies, amongst others. Such studies enable informed decision-making in tax policies, implementation of strategies based on a thorough analysis, and better allocation of the tax administration's scarce resources. While the main hindrance is weak capacity, there is also a lack of reliable data in the province of Khyber Pakhtunkhwa. Economic and sectoral data as well as taxpayer data, which are used as the basis for assessing different taxes, are archaic and need to be updated. To ensure timely and effective analysis of the revenue aspects of the fiscal policy, the GoKP will rely on tax experts from outside rather than establishing an in-house tax policy unit. As such, the TPU’s function will be to mobilize and coordinate all tax policy analysis via outsourced tax experts for the three tax collecting entities.

The role of government reform mechanisms (SRG / CRG / ORGs) has been instrumental in formulating the reform agenda for the Khyber Pakhtunkhwa tax system. As a result, the GoKP has decided to continue leveraging the advantage of these groups for transition from KPIRMAP development to KPIRMAP implementation. At the operational level,the ORGs will monitor implementation of the entity specific tax reforms plan and support the head of the entity to manage the process. ORGs will meet at least monthly or more frequently as deemed appropriate by the head of the entity, and led by a senior official as focal point. At the heads of agencies level, the CRG will monitor and manage implementation of the KPIRMAP, led by Secretary Finance and support the SRG. It will set tax revenue targets, monitor results, provide leadership, facilitate coordination between tax agencies as well as other provinces and federal government. In doing so it will take management decisions to implement KPIRMAP. It will continue to be chaired by the Secretary Finance and have the heads of KPRA, BoR and E & T as permanent members (with others to be co-opted as required). For secretarial support, CRG will be supported by the Tax Policy Unit (TPU). The CRG will meet at least quarterly or more frequently as deemed appropriate by Secretary Finance or on formal proposal by the head of any of the three tax entities. Similarly, at the political level, Strategic Reforms Group (SRG) will monitor and manage the tax reforms implementation. SRG will be chaired by the Minister of Finance. SRG will be convened at least twice a year or more frequently as needed to oversee KPIRMAP implementation, provide direction and guidance, and ensure effective implementation. TPU will also act as secretariat for SRG.

II.OBJECTIVE

Tax Economist is to ensure due-diligence and qualityin all tax policy research studies performed by the Academia as well as facilitates a tax policy dialogue among FD and tax administration entities in order to move the GoKP tax agenda forward.

III.TASKS and ACTIVITIES

The main tasks of the Tax Economist include:

1)Revenue Monitoring:

Supervise the monitoring of revenue collection of three tax entities (KPRA/ETD/BOR)
Report on tax compliance gap bi-annually

2)Mobilizing/Coordinating Tax Policy Research

Develop the methodology to be used, in collaboration with Academia, for all core related research (revenue forecasting, tax expenditure analysis, compliance gaps, taxpayer compliance and administrative costs)

Review Research Proposals submitted by tax entities for specialized tax policy research (on a need basis) to ensure they reflect the objectives set out in the GoKP reform agenda
Review/Approve all Technical Proposals (including methodology proposed) developed by Academia to ensure in accordance with international best practice
Review/Approve final research reports submitted by Academia for assurance of quality, consistency, measurability, and objectivity
Supervise and evaluate work performed by Research Analysts on a monthly basis
Liaise between Academia and [insert - KPRA, ETD, or BOR], as requested by each party.
Assist Academia to collect data/information/documentation as needed from [insert – KPRA, ETD, or BOR] or other government entities
Keep updated on international best practice methodology for tax-related research
Lead briefing sessions and presentations/workshop, as required by the FD or [insert – KPRA, ETD, or BOR]

3)Reform Coordination

Supervise and facilitate routine work of the Reform Coordinator
Liaise with senior government officers on behalf of the Reform Coordinator
Evaluate work performed by the Reform Coordinator on a bi-annual basis

(a)

IV.REPORTING ARRANGEMENTS

The Tax Economist will report directly to the Finance Secretary of the Finance Department of the Government of Khyber Pakhtunkhwa. The Tax Economist with have four subordinates. The Tax Economist will work closely with three Research Assistants within the TPU to support the GoKP in fulfilling the first function of the TPU. The Tax Economist will monitor and supervise the Reform Coordinator in fulfilling the second function of the TPU. The Tax Economist will liaise between the Finance Secretary, the tax entities (KPRA, ETD, and BOR) and the Academia.

Organization Relationships
Position Reports to / Finance Secretary
Supervisory Role / Research Assistants (four); Reform Coordinator (one)
Key Peer Relationships / KPRA/ETD/BOR, SRG/CRG, and Academia

V.CONTRACT PERIOD

His/her contract will be initially for a one-year, after which it can be extended based on performance.

VI.PROFILE/QUALIFICATIONS

PhD in Economics from HEC recognized University.
A minimum of 8 years professional experience with at least 5 years related to economic modeling and research. Experience relating to tax administration/policy will be an advantage.
Strong report writing skills and ability to effectively communicate findings at high fora including senior level government officials and development partners.
IT proficient (Minimum requirements: Ms office, Ms Excel, Ms PowerPoint, Ms Word & Outlook)
Capacity to use key economic analysis software such as STATA, SPSS, etc.
Knowledge of government institutions and working of provincial departments
Knowledge of the tax regulatory system in the Province of Khyber Pakhtunkhwa
Must be fluent (written and oral) in Urdu, Pushto & English. Fluency in other regional languages will be an advantage.
Analytical capacity and critical thinking skills; attention to details a must.
Ability to supervise staff and work well with others
Ability to produce quality documents and communications as required.

VII.SELECTION METHOD

The Tax Economist will be selected on a competitive basis in accordance with process stipulated in Section V of “Selection and Employment of Consultants under IBRD Loans and IDA Credits & Grants by World Bank Borrowers (January 2011) (Revised July 2014).

TERMS OF REFERENCE

RESEARCH ANALYST

TAX POLICY UNIT

Finance Department, Government of Khyber Pakhtunkhwa

I.BACKGROUND

The Government of Khyber Pakhtunkhwa (GoKP) has set out an ambitious medium-term (5-year) tax reform agenda, which is described in the ‘Khyber Pakhtunkhwa Tax Revenue Mobilization Plan’ (KPIRMAP). One key objective of the agenda is to initiate evidence-based tax analytical studies to enable informed decision-making in tax policy and ensure a tax system that is efficient and fair. A second key objective is to foster effective coordination between the three tax collecting institutions and the FD to move the reform agenda forward. To fulfill these objectives, a new unit called the Tax Policy Unit (TPU) will be established under the administrative control of the FD. The TPU will be tasked with two main functions: (i) mobilize and coordinate all tax policy analysis via outsourced tax experts for the three tax collecting entities – Khyber Pakhtunkhwa Revenue Authority(KPRA), Excise, Taxation and Narcotics Department (ETD), and Board of Revenue (BOR), and (ii) facilitate knowledge-sharing and coordinate the reform implementation groups - Tax Reforms Core Group (RCG) and Strategic Reforms Group (SRG).

II.OBJECTIVE

The objective of this Research Analyst (RA) position is to ensure the generation of quality tax policy research and analysis (function one above) by liaising between the tax collecting entity [insert – KPRA, ETD, or BOR] and Academia.

III.TASKS and ACTIVITIES

The main tasks of the RA include:

1)Revenue Monitoring:

Monitor revenue collection of three tax entities (KPRA/ETD/BOR) and report results to tax entities and FD on a weekly basis

2)Mobilizing/Coordinating Tax Policy Research

Liaise between Academia and [insert - KPRA, ETD, or BOR], as requested by each party.
Assist Academia to collect data/information/documentation as necessary from [insert – KPRA, ETD, or BOR] or other government entities
Keep updated on international best practice methodology for tax-related research
Assist Tax Economist to review final research reports submitted by Academia for quality, consistency, measurability, and objectivity; collect additional data/information as needed from Academia and [insert - KPRA, ETD, or BOR]
Set up briefing sessions and presentations/workshops on each tax study performed for [insert – KPRA, ETD, or BOR]. Any studies performed for all three entities will be set up by RAs on a rotating basis.
Participate in briefing sessions and presentations/workshop, as required by the FD or [insert – KPRA, ETD, or BOR]; record minutes of all sessions/presentations/workshops.

(b)Core Research

Draft ‘Terms of References’ for all core related research (revenue forecasting, tax expenditure analysis, compliance costs) based on technical proposals developed by Tax Economist and Academia

(c)Specialized Research (on a need basis by tax entities)

Review all tax research requests from [insert – KPRA, ETD, or BOR]
Develop ‘Request for Proposals’ which outline the objective(s), rationale, key dates/timeline, expectations, methodology required (if applicable), and other mandatory requirements, if any
Ensure all documentation is in order (CVs, etc.) for the selection of potential candidates (consultants/firms) to undertake research
Draft ‘Terms of References’ for all specialized research as requested by [insert – KPRA, ETD, or BOR] based on technical proposals developed by Academia

3)Other Tasks:

Write (i) monthly reports on Academia performance; (ii) quarterly reports on [insert – KPRA, ETD, or BOR] performance
Other related tasks as required by the Tax Economist.

IV.REPORTING ARRANGEMENTS

The RA will report directly to the Tax Economist of the TPU, under the general supervision of the Finance Secretary of the Finance Department of the Government of Khyber Pakhtunkhwa. The RA will work closely with two other RAs within the TPU to support the GoKP in fulfilling the first function of the TPU. The RA will liaise between [insert KPRA, ETD, or BOR] and the Academia. The RA will have no subordinates.

Organization Relationships
Position Reports to / Tax Economist
Supervisory Role / No subordinates
Key Peer Relationships / Other Research Analysts, Academia, [Insert KPRA/ETD/BOR]

V.CONTRACT PERIOD

His/her contract will be initially for a one-year, after which it can be extended based on performance.

VI.PROFILE/QUALIFICATIONS

Masters in Economics or a related field from HEC recognized University.
A minimum of 5 years professional experience with at least 1 year related to economic modeling and research
Strong report writing skills and ability to effectively communicate findings at high forums including senior level government officials and development partners.
IT proficient (Minimum requirements: Ms office, Ms Excel, Ms PowerPoint, Ms Word & Outlook)
Knowledge of government institutions and working of provincial departments.
Must be fluent (written and oral) in Urdu, Pushto & English. Fluency in other regional languages will be an advantage.
Ability to work well with others
Ability to produce quality documents and communications as required.

VII.SELECTION METHOD

The selection will be on a competitive basisin accordance with process stipulated in Section V of “Selection and Employment of Consultants under IBRD Loans and IDA Credits & Grants by World Bank Borrowers (January 2011) (Revised July 2014).Applications will be received and reviewed against the selection criteria.

TERMS OF REFERENCE for

REFORM COORDINATOR

TAX POLICY UNIT

Finance Department, Government of Khyber Pakhtunkhwa

I.BACKGROUND

The Government of Khyber Pakhtunkhwa(GoKP) has set out an ambitious medium-term (5-year) tax reform agenda, which is described in the ‘Khyber Pakhtunkhwa Integrated Revenue Mobilization Action Plan’ (KPIRMAP). One key objective of the agenda is to initiate evidence-based tax analytical studies to enable informed decision-making in tax policy and ensure a tax system that is efficient and fair. A second key objective is to foster effective coordination between the three tax collecting institutions and the FD to move the reform agenda forward. To fulfill these objectives, a new unit called the Tax Policy Unit (TPU) will be established under the administrative control of the FD. The TPU will be tasked with two main functions: (i) mobilize and coordinate all tax policy analysis via outsourced tax experts for the three tax collecting entities – Khyber Pakhtunkhwa Revenue Authority (KPRA), Excise, Taxation and Narcotics Department (ETD), and Board of Revenue (BOR), and (ii) facilitate knowledge-sharing and coordinate the reform implementation groups - Core Reforms Group (CRG) and Strategic Reforms Group (SRG).