Tax Policy and Revenue Forecasting

Due to the comprehensive nature of the fiscal reform, fiscal policy reforms often require consideration of a large number of related fiscal aspects, including reform of the tax structure, tax administration, budget management, pension reform, intergovernmental fiscal relations and revenue forecasting. Whereas many practitioners only specialize on a particular piece of the fiscal system, the depth and breath of the International Studies Program allows us to take into account both the individual components of the fiscal system (such as individual taxes or expenditure programs) as well as the architecture of the fiscal system as a whole.

Example Projects:

Jordan: Developing a Municipal Own Source Revenues (IGF) Policy Document

In 2018, ICePP developed a municipal own source revenue policy document for Jordan. The document included policy guidelines, timing on setting the tax base, exemptions, and tax and user charge rates. Additionally, the report recommended the level of municipal discretion in adopting policy choices within limits set by the central government for municipal IGF revenue. This included both general and specific revenue instruments, such as property taxes, professional licenses, building permits, charges, solid waste revenues, betterment levies, rents and others miscellaneous municipal taxes, fees and charges.

Pakistan: Tax Policy Reform Project
ICePP partnered with the World Bank and the Government of Pakistan for a 22-month Tax Policy Program (TAP), focused on reforming Pakistan’s tax system. The project involved three key components: a comprehensive assessment of Pakistan’s tax policies, learning from international best practices, and building the government’s capacity for fiscal policy analysis.

Through this initiative, nine policy papers were produced, addressing critical areas such as tax policy options, tax gap analysis, subnational tax reform, enterprise taxation, household equity, and international tax treaties. The final report offered detailed reform options and served as a blueprint for modernizing Pakistan’s tax system, aligning it with global standards.

Tax and Fiscal Reform Project in the Russian Federation
ICePP led a landmark $10.4 million technical assistance contract funded by USAID to assist the Russian Federation in fiscal reform. This comprehensive project spanned five major areas,including tax policy, tax administration, fiscal decentralization, property taxation and economic and fiscal analysis.