Draft Terms of Reference
Tax Administration Capacity and Tax Payer Services (TACTS)
1. The objective of this project is to successfully implement the Tax Administration
Capacity and Tax Payer Services (TACTS) project through providing high
calibre and timely project management and technical assistance resources.
Consultancy services are required to assist the National Board Revenue (NBR)
to achieve the following outputs:
• Increased efficiency, professionalism and effectiveness of Large Taxpayer
Units (LTU), with sustainable systems and processes implemented
leading to increased tax collection;
• LTU business processes replicated, through a phased roll-out to selected
income tax and VAT zones across Bangladesh;
• More taxpayers brought into the tax net through an improved taxpayer
identification system and reformed business processes in the Central
• The public receive more professional and efficient taxpayer services;
• Tax payment enforcement improved through a strengthened Central
Intelligence Cell (CIC) that is better able to investigate tax evasion cases
and prosecute through the legal system;
• Internal audit and inspection in LTUs and CIC fully functioning and piloted
in selected tax zones;
• Taxpayer appeals procedures strengthened;
2. The recipient of the services will be the NBR of the Government of Bangladesh.
3. The consultants will provide high calibre and timely inputs (both human and
physical) in order to manage and successfully implement the TACTS project
comprising of components mentioned in Annex B of the Project Memorandum.
The Management Consultants will implement the project with international and
local consultants with appropriate skills on project components.
4. The methodology for project management and implementation will be
confirmed during the Inception phase and will be based on the approach
proposed by the selected consultants. The Project Memorandum outlines the
project approach, with further information included in Annex B on technical
project implementation details.
5. As a primary objective of this project is sustainability, consultancy
support is planned to be phased out in the final year of implementation.
This will require an increase in full time counterpart staff dedicated to
continuing the reform efforts, particularly during the final year.
5. Within one month of mobilisation the Consultant will submit an outline work-
plan and expenditure plan for the next 11 months. These plans will be
submitted to DFID and the Project Steering Committee (PSC) for approval.
Within three months, the Consultant will submit for PSC and DFID approval, a
detailed inception report for the remainder of the project.
6. In year 1, design of the roll-out of Income Tax LTU business processes
to 3 to 5 pilot zones and of VAT processes to 3 pilot zones would begin
jointly, with the objective of rolling-out on a phased basis to the selected
zones in year 2 or 3 of the project, depending on progress in the LTUs
reaching an advanced stage. Since the VAT LTU was established later
than the Income Tax LTU, roll-out to the VAT pilot zones may
commence later than for Income Tax.
7. The roll-out will include modest but well-targeted computerisation, which
will need to link in with the larger automation plans that the NBR is keen
to pursue for the tax administration as a whole. Implementation phase will
commence immediate after the inception phase ended.
8. The emphasis in the first 3 years will be primarily on: consolidation of business
processes in the LTUs and CIC; design of the roll out of LTU business
processes to 3-5 pilot zones; and detailed design of the National Taxpayer
Identification Number (NTIN) and the taxpayer services programme. The
implementation of roll-out to the pilot zones will begin in year 2 or 3 depending
on reforms in the LTUs reaching an advanced stage, and the NTIN will largely
be implemented over a 2 year period (which will include data from the voter
roll registration prepared for the 2008 elections). Hence years 4 and 5 will
have emphasis on implementation of role out plan/design, and implementation
of the NTIN.
9. The consultancy team will be expected to develop comprehensive training
plans in close consultation with NBR officials in each of the project
components. The Consultants will be responsible for providing formal training
which will be complemented with continuous mentoring, including hands-on
practical approaches throughout the project.
11. The team leader will report to NBR’s Project Director for TACTS, who will be
responsible to the NBR Board for all reporting on the project. This will include monthly
meetings with the Project Director regarding progress on the project. The Consultant
will be required to consult with the Project Director regarding selection of international
and local consultants on the team, and refer to the PSC on this matter as necessary.
12. The Consultant will be required to provide a core management team and a pool
of consultants (Resource Pool) that will be available to undertake short-term and/or
long-term assignments as and when the need arises. The Consultant will be required
to consult with the Project Director regarding the use of the Resource Pool, and refer to
the PSC on this matter as necessary.
13. The team leader will also assist the Project Director and Deputy Project Director
in preparing for PSC meetings.
14. The selected Consultant will be responsible for delivering all of the outputs.
The Consultant will be required to submit quarterly progress reports and financial
reports to the Project Director, DFID and the PSC. The Consultant will also be required
to produce monthly work plans in advance for PD’s approval.
15. The project will last for five (5) years from the point of signing of the contract.
Within one month of mobilisation the Consultant will submit an outline work-plan and
expenditure plan for the next 11 months. These plans will be submitted to DFID and
the PSC for approval. Within three months, the Consultant will submit for PSC and
DFID approval, a detailed inception report for the remainder of the project. The
inception report will provide the implementation strategy with related targets. There is a
possibility of an extension of up to 12 months, subject to continued need for these
services and the satisfactory performance of the Consultant.
16. The budget for the 5 year contract duration is £6.8 million GBP, including
management costs and £888,000 in respect of procurement of goods/equipment. A
DFID Procurement Agent will be responsible for procuring the goods/equipment in
accordance with DFID policy. The management consultant will be responsible for
overseeing the procurement of goods/equipment and placing orders with the Crown
17. The DFID Lead Adviser for this project will be M. Masrur Reaz (Private Sector
Adviser), and the Project Officer will be Mohiuddin Ahmed. While the Lead Adviser will
be responsible for overall coordination of the consultant’s work, the Project Officer will
be responsible for matters relating to administrative arrangements and payments.
Procurement Group, DFID will be responsible for all contractual matters.
Project Governance and Accountability
18. The NBR Board will be responsible for implementing this project, with overall
responsibility lying with the Chairman of the NBR. A Board member will act as Project
Director, supported by a full time Deputy Project Director from the NBR. A Project
Steering Committee (PSC), chaired by the NBR Chairman, will set the overall direction
of the project, including approval of recommendations and work plans.
19. The NBR will provide office accommodation for consultancy staff in the NBR,
and pilot offices outside Dhaka. The NBR will also establish the Project Steering
Committee and call/arrange meetings. A full-time Deputy Project Director will be
appointed and funded by the NBR and counterparts in each of the units/offices
supported by this project will also be appointed.
20. Qualifications and Experience
• Demonstrable track record in managing complex change management
programmes in the public sector;
• Experience in South Asia - experience in Bangladesh is preferred;
• Experience and proven track record of similar work;
• Competencies and experience of nominated candidates for all long term posts,
particularly team leader to carry out similar work, and ability to deliver a hands-
on and close mentoring approach of technical skills transfer to Government
• Experience of operating and maintaining project teams in-country;
• Previous experience of working on DFID or other donor-funded projects.
21. The Government of Bangladesh, with support from the UK Department for
International Development, will be implementing a five-year project – Tax
Administration Capacity and Taxpayer Services (TACTS) - from February 2010-
January 2014. The project will be implemented in the National Board of Revenue
22. TACTS will enable the Government of Bangladesh (GOB) to strengthen its
weak capacity to collect tax revenue. It will build on the DFID-funded Reforms in
Revenue Administration (RIRA) project (2002-2008). RIRA has supported the
establishment of two pilot Large Taxpayer Units for income tax and VAT in Dhaka as
well as a Central Intelligence Cell to investigate and prosecute tax evasion. These two
initiatives have been central to increased Government revenues. TACTS will continue
reforms in these areas to consolidate and expand these achievements. In addition, it
will begin to roll out the strengthened business processes piloted in the LTUs across
the country, and focus on strengthening taxpayer services with a view to increasing
taxpayer trust and voluntary compliance.
23. The project will complement a proposed comprehensive programme of reforms
in revenue administration to be supported by a World Bank Revenue Administration
Modernisation Project (RAMP).