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Strategy and policy
Reform Support

Building capacity in Latvia to design the revenue service's operational strategy

Supporting reforms to ensure efficient and effective revenue administration and public financial management

Funding Programme
Year
  • 2022

Building capacity in Latvia to design the revenue service's operational strategy

The Lithuanian tax administration, State Tax Inspectorate (STI) needed continued specialised external technical support to help them follow-up and capitalise on the outputs produced in a previous project targeting the same taxpayers’ segment. After 16 and a half months of implementation, STI was ready to allocate sufficient staff to continue dedicated control activities for HNWI, with a view to improve compliance of this taxpayers’ segment.

Context

Effective revenue collection in Latvia is essential in supporting economic recovery and growth. The Latvian State Revenue Service (SRS) is responsible for implementing tax and customs policy, requiring continuous institutional development and capacity building. To provide transparency, the SRS is obliged by law every 4-6 years to develop a Medium-Term Operational Strategy entailing both organisational development objectives and international and national policy objectives in administration of tax and customs. The new Strategy for 2023-2026 also functions as the framework for the implementation of a component of the Latvia’s Recovery and Resilience Plan.

Support Delivered

A private provider has assisted SRS in preparing this reform with and assessment of SRS's’ current operational and strategic framework, proposal for a Medium-Term Strategy (2023-2026) and action plan, recommendations to incorporate lessons learned in the pilot implementation and training sessions. A closing event was organised in hybrid mode on 9 January 2024 to discuss the project’s work and the planned follow-up actions.

Results achieved

The Project scope addressed the production of the proposal for an SRS 2023-2026 Medium-Term Operational Strategy and capacity building to support the implementation of the Strategy. The Project contributed towards 2 outcomes:

  • Adoption of the 2023-2026 Medium-Term Operational Strategy of the SRS.
  • Implementation of a new Medium-Term Operational Strategy for the SRS.

The following results are envisaged on the short to medium term: reduced shadow economy, improved tax compliance and a fairer business environment.

Useful links

More about the project

You can read the documents related to the project here:

OSZAR »