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Ministry of Transport
Department of Land Transport
Thailand

The Problem

In 2003, the cabinet members of Thailand reached a consensus on the decision, with the recommendations from the Office of the Public Sector Development Commission (OPDC), to advise all public sectors to commit to a reduction of bureaucratic procedures and public service delivery time to at least 30-50 percent of what was currently being practiced. Consequently in 2004, OPDC introduced a manual for guidance on the reduction of procedures and public service delivery time 2004-2005 indicating research and analysis techniques emphasizing improvements on citizens’ happiness, operational timeliness, and efficiency for operators. The manual also specifies monitoring and reporting techniques to win the Quality of Public Service Award. The qualitative indicators included time reduction, customer satisfaction, improved level of availability and accessibility, and the number of customers per minute while the qualitative indicators stressed the key areas of procedure reform, “Citizen Centered” service mind, promotion of convenient accessibility, and lastly the encouragement of knowledge and skills improvement.

Upon reviewing many public sectors reports on performance, the Department of Land Transport (DLT) has shown highly dedication and a very clear purpose to reform its administration a decade before the cabinet’s decision to regulate this key aspect of public service delivery. With the implementation of the One Stop Service program to reform vehicle-registration-tax (road tax) collection service and its nationwide launch under the slogan “Pay Tax in Three Minutes” in 2002, the DLT has modeled it self as an excellent example for the concept of Single Minute Exchange of Customer (SMEC) to deliver quality public service to customers within ‘single-digit’ minutes. The program received the best performance on the quality of public service delivery award in 2003 and continuously won the Award’s recognition through to the year 2005.

In 2006, the DLT has once again proved its sincere commitment to continuously improve the quality of public service by launching two innovative programs, the Drive Thru for Tax and Shop Thru for Tax. Both programs bravely opened up new alternative channels for the government to reach out to its citizens to provide easier access to public services. The Drive Thru for Tax is the first of its kind to provide an innovative method for paying tax and the program won the OPDC’s Innovative Public Service Award in 2006.

With its performance on high-quality service delivery, clearly red tape reduction and distinctively programs initiatives, the OPDC would nominate the Department of Land Transport for the United Nations Public Service Awards for the year 2007.

Solution and Key Benefits

 What is the initiative about? (the solution)
The Department of Land Transport (DLT), a government agency under the Ministry of Transport is respondsible to the duty of conducting vehicle registration services, collecting vehicle-registration-tax (road tax) and regulating bus and truck transport industry. During the early 90’s, the DLT faced a major challenge of resource constraint due to the upward trend of newly registered vehicles and the government stringent policy to downsize public servant workforce and budget buckling. On the other hand, the strong public demand of improvement of service transparency, accountability, timeliness and service courtesy posed a strong requirement for organizational change. A new process reform must be launched in order to make effective use of the limited resources at hand and to ensure and improve the quality level of public service delivery.

With intensive situational analysis and planning, the DLT gradually introduced changes setting the goal to reduce the 7-step tax collection procedure to one step serviced by only one officer. The basis for change was laid out by shaping up the core information with an integrated central database, digitizing all records and paperwork to provide traceability and transparency. Rules and regulations were amended in preparation for the reform process. Innovative procedural designs and information technology enabled the reduction; while intensive staff training programs nurtured the concept of good governance emphasizing “Citizen Centered” service mind to all levels of staff ensured the smooth transition of quality of service. Office environments were restructured to provide an improved comfortable atmosphere for customers and operators, supported by additional customer services such as 24/7 service call center. The One Stop Service program was finally ready for a nationwide launch in 2002.

The achievements resulting from the One Stop Service program included the significant reduction of tax collection service time from the average of one hour per vehicle record to 3 minutes and a reduction of staff from 4 officers to only one officer per service counter. The integrated database and information management not only provided tax calculation accuracy, accountability and transparency, but allowed for standardized accessibility with the same quality of service at all regional service branches across the country, dissolving bottleneck service counters and distributing work loads to less congested branches.

To further provide availability and accessibility of government services, the DLT launched two additional programs in 2006. While the Drive Thru for Tax program not only solved the limited parking space and traffic congestion at DLT offices, but proves to provide a faster service time and perked up customer satisfaction, the Shop Thru for Tax program was a major reach out to public communities and extended availability beyond regular office hours.

The vehicle-registration-tax collection reform process had achieved its goal to provide a higher quality of service delivering and utilizing the limited resources effectively and efficiently. Awards received from the OPDC and acceptance from customers and other agencies are proof of the program is accomplishments and pave the way for the program’s quality of service sustainability and potential improvements.

Actors and Stakeholders

 Who proposed the solution, who implemented it and who were the stakeholders?
1990-1993 - Conceptualized vehicle-registration-tax collection process reform moving away from an excess of paperwork and disseminated manual recordings towards an integrated digitized database accessible to all regional office branches.
- Planned for a gradual reduction of red tape.
- Conducted an initial procedure reduction from 7 steps to 6 steps.
1994-2001 - Reformed rules and regulations for the streamline procedures to abide by.
- Issued regulations to eliminate application form submission, thereby reducing procedural steps to 5 steps.
2002-2005
- Designed a digitized vehicle registration tag, eliminating manual authorizing signature and combine tag printing process with receipt prints.
- Restructured office environments and provide supporting services that are more convenient to the public.
- Launched the One Stop Service program nationwide under the slogan “EZ tax paid within three minutes.”
2006 - Conceptualized alternative channels for citizen accessibility to comply with tax collection.
- Launched the “Drive Thru for Tax” program at headquarters and gradually opened up services in major cities.ท Launched the “Shop Thru for Tax” program at major shopping complexes.
2007 - Plan to launch “24/7 Tax On-line” program.

(a) Strategies

 Describe how and when the initiative was implemented by answering these questions
 a.      What were the strategies used to implement the initiative? In no more than 500 words, provide a summary of the main objectives and strategies of the initiative, how they were established and by whom.
As a public service sector responsible for overseeing rules and regulations on the roads for domestic and international transportation, the Department of Land Transport (DLT) responds to the duty of conducting vehicle registration services and collecting the annual vehicle-registration-tax (road tax) on all vehicles registered in the Kingdom of Thailand.

According to the statistics collected on the 31st of December 2005, the total number of vehicles registered within the country amounted to 25.26 million and has increased by an average of 2.75 million vehicles per year over the last decade, equivalent to 10.89% increase in 2005. This means that the DLT staff must service over 7500 vehicles per day and the work on collecting vehicle-registration-tax is increasing accordingly. While in the early 90’s the government imposed a stringent policy of downsizing the public servant workforce by offering early retirement plans and budget buckling, the DLT faced staff shortage and a challenge to make the best use of available resources.

On the other hand, the citizens’ demand for improvement of service transparency, accountability, timeliness and service courtesy posed a strong requirement for the DLT. At the time, the practice of vehicle registration and tax collection was an arduous and time consuming process. This complex procedure required at least 4 officers per service station to perform to a 7 step task to assure corrections and minimize corruption. Staff must delve through piles of paperwork to search for old reports, check for mistakes, create new records, check again, and have it signed off by an authorized person, averaging to at least one hour per vehicle record. Moreover, the payment of tax must be processed only at the branch where the vehicle was first registered, inducing customer bottlenecks at major service branches; and while parking spaces at the DLT offices were limited and suffered from traffic congestion. Citizens resorted to the “Middle Man” to conduct all taxes and registration requirements, avoiding the confusion and the long commute to the DLT offices.

Under the above circumstances, the DLT decided to perform intensive analysis in order to reform all processes of vehicle-registration-tax collection service.

(b) Implementation

 b.      What were the key development and implementation steps and the chronology? No more than 500 words
The reform process aims to provide a higher quality of service delivery and to utilizing the limited resources effectively and efficiently. The DLT aimed to speed up vehicle-registration-tax collection service time, offering easier accessibility and availability to citizens. The result should ensure accountability on tax calculation accuracy and traceability during all cross check investigations. All staff should perform duties under the concept of good governance and citizen satisfaction could be measurable by the elimination of the “Middle Man.”

The first priority of all tasks was to perform intensive analysis and thorough planning for all phases of the reform. An integrated and reliable database to provide a basis and backbone for all information management must be established. Red tape must be lifted in order to speed up service processing time according to the government’s indicative measurement. New procedural design should reduce service time and staff providing the service. Rules and regulations must be reformed in order to facilitate and allow new procedural designs to take place. And lastly the reform should provide additional accessibility to vehicle-registration collection for tax payers.

(c) Overcoming Obstacles

 c.      What were the main obstacles encountered? How were they overcome? No more than 500 words
The strategies used to achieve the above purposes and priorities are as follows:
1. Conduct a gradual process to streamline vehicle-registration-tax collection from a 7 step procedure to a one step process utilizing only one officer.
2. Utilize innovative and effective procedural designs such as
a. Elimination of vehicle-registration-tax application form submission
b. Digitized registration tag, removing manual authorized signature and enabling the printing of registration tag and receipt into one printing procedure.
3. Digitize all records/paperwork and integrate information in a central database to provide traceability and transparency.
4. Integrate and share information at all service branches to provide a standardized service and increase service accessibility for paying vehicle-registration tax at any branch, not only limited to the branch where vehicles are registered.
5. Initiating staff training at all levels with the goal to develop positive prospective towards good governance, emphasizing on the “Citizen Centered” concept.
6. Promote employee and customer acceptance to change by valuing all comments and introducing channels for receiving views to improve quality of service.
7. Report and inform executives and authorized agencies on all progress in order to receive policy support and backups on rules and regulation reforms.
8. Improve office environments by installing air conditioning in offices, providing free drinking water and newspapers, and carry out automatic queuing system.
9. Provide supporting services for tax payers by
a. Offering free transportation from service station’s front gate to service office door, thereby minimizing parking traffic.
b. Providing a 24/7 call center with customer service officers to answer all relevant questions to clarify all processes and reduce service time at service counters.
10. Provide additional alternative channels of service accessibility through innovative programs.

(d) Use of Resources

 d.      What resources were used for the initiative and what were its key benefits? In no more than 500 words, specify what were the financial, technical and human resources’ costs associated with this initiative. Describe how resources were mobilized
The strategic planning and implementation of vehicle-registration-tax reform has induced major changes nationwide as follows:
1. Reduction of red tape procedure from 7 steps to 1 step through the One Stop Service program, minimizing the service time per vehicle record at servicing office to 3 minutes on average.
2. Efficient and effective use of human resources by utilizing only one officer to provide service at the service counter.
3. Reduction of paper work by eliminating unnecessary application forms and reports.
4. Accurate tax calculations, transparent and traceable procedures through integrated database and electronic records.
5. Standardize high quality of service at all service branches.
6. Formation of two new channels for vehicle-registration-tax service; opening up more public accessibility.
a. Drive Thru for Tax program where tax payers can drive through to pay tax at the service booth without having to waste time parking and walking to the service office. The achievable service time per vehicle reduced to 1 minute 20 seconds.
b. Shop Thru for Tax program where tax collection office delivers its service to communities at major shopping complexes on Saturdays, Sundays, and on holidays, providing additional service time to regular office hours. The level of service is equivalent to that of the service branches at DLT offices.
7. Dissolving bottlenecks at service counters in major branches where most vehicles are registered and distributing the work to less congested branches.
8. Lessen traffic congestion at parking lots and free up more parking spaces due to the different channels of service accessibility.
9. Positive feedbacks from tax payers and minimizing the “Middle Man” service.
10. Large framework transformation of administrative culture and major improvements of staff service interaction with tax payers to become more friendly and sincere by inducing officers’ high spirits in a more modern comfortable working environment and efficient procedures.

Sustainability and Transferability

  Is the initiative sustainable and transferable?
The Department of Land Transport aims to maintain the highest standards and quality of tax collection service and to become a model for other governmental agencies through the of the following implementations.

1. Encourage all regional branches to bring all services up to the qualified standard by
a. Setting aside adequate budget for improving information technology management and maintaining an integrated national on-line database.
b. Set up operational standards and key indicators for measuring levels of quality of service and customer satisfaction.
c. Encourage inter-office knowledge sharing and skills transfer.
d. Lay out a development model in providing supporting services within service branches for all regional offices to conform to.
e. Form a working group to continuously monitor operations and improve services.
2. Develop innovative ways to increase new channels for tax collection services to keep up with tax payers’ demands through programs such as Drive Thru for Tax and Shop Thru for Tax. Future plans incorporate the 24/7 Tax On-line program which will bring service to tax payers with no limits on time or place.
3. Promote tax payers’ awareness of the different channels for paying tax through various publications in order to create positive customer relations and support.

Additionally, other factors contribute to the sustainability and transferability of the DLT’s programs.

1. A lucid national policy in good governance received from DLT’s executives and OPDC’s recommendation.
2. Customer support and positive feedbacks requires the DLT and its staff to keep up with its highest level of service as indicated by the OPDC’s report on 82% satisfaction with increasing trend.
3. Interests from other agencies and sectors to utilize the DLT’s vehicle-registration-tax collection service reform as a model program to improve their own public services.

Lessons Learned

 What are the impact of your initiative and the lessons learned?
From the process of reforming vehicle-registration-tax service, the DLT has overcome many obstacles and handled them successfully in many key areas.

The shortage in human resources to handle an increased amount of work due to the government’s policy of minimizing the workforce and budget cuts to has pushed the DLT to consider major procedural reform. Rigorous analysis and planning must take place to ensure synchronzied timing of the expected outcome of each performed tasks to produce successful and effective results of the intended goals. For example, the rules and regulations must be amended in time to facilitate the introduction of new channels for tax payment.

A gradual reform of the reduction of steps of operations incorporated with excessive training and skill transfers were essential to the acceptance of major changes. Fostering the concept of “Citizen Centered” service mind into staff and an introduction to the policy of good governance requires nurturing time and support from all levels of staff from executives to operators.

Last but most importantly, an innovative idea, by thinking outside the box, can solve many problems in one shot. The Drive Thru for Tax program not only solved the limited parking space and congested traffic, but proved to provide a faster service time and increased up customer satisfaction.

Contact Information

Institution Name:   Department of Land Transport
Institution Type:   Government Agency  
Contact Person:   Chirute Visalachitra
Title:   Director of Vehicle Registration and Tax System Di  
Telephone/ Fax:   662 272 6141
Institution's / Project's Website:   662 272 5626
E-mail:   chirute@dlt.go.th  
Address:   1032 Phahonyothin Road, Chatuchak
Postal Code:   10900
City:   Bangkok
State/Province:   Bangkok
Country:   Thailand

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