United Nations Public Service Awards Case Studies

Upon taking office on July 19th 2005, the Government of Lebanon committed to an ambitious reform agenda.
In the wake of the July 2006 war and its economic and political fallout, the Government's reform program was re-phased to strike a careful balance between post-conflict needs, restoring the foundations for solid growth, and enhancing transparency regarding Paris III pledges (International Conference for Support to Lebanon).
Despite a wide array of obstacles and unfolding crisis threatening Lebanon and its economy, the Ministry of Finance was able to achieve a number of successes in line with its reform strategy and commitments.
The means that were used to inform the taxpayers, to disseminate news and publications, and to allow the online access to services and information were insufficient. The citizens lacked a certain tax culture that would allow them to have a more transparent outlook on the services offered to them.
A strong will had risen to enhance transparency, improve accountability and responsiveness in the public sector. As such, the key domestic structural reforms adopted by the Ministry of Finance focused on launching a wide public communication and advertising campaign, enabling and promoting access to services and information, as well as setting an internal accountability program and soliciting taxpayers' feedback through conducting periodical customer satisfaction studies.

What is the initiative about? (the solution)
The Tax Administration was the pilot unit for the application of new and pioneering methodologies, such as a performance contract aiming at enhancing the Administration's internal accountability. The contract included specific qualitative (laws and procedures) and quantitative (figures and statistics) indicators that measured several criteria: transactions processing time, processes accuracy, tax equity and liability, transparency through periodic publications, and operations tracking and follow-up. Given that "Evaluation leads to Evolution", such a primordial innovation is guaranteed to ameliorate the work within the Ministry and benefit all taxpayers by ensuring better services. Key Performance Indicators (KPIs) were established and lead to an increase in compliance rates and revenue collection and to a decrease in discrepancies and arrears. In fact, during the 3rd quarter of 2007, 95% of VAT taxpayers filed voluntarily their tax returns and 97% paid their due liabilities. As such, the growth rate of the number of registered VAT taxpayers increased from 0.86% during the 2nd and 3rd quarter of 2006 to 1.53% for the same period of 2007. The MoF developed a web portal with an array of e-services that enable each taxpayer, through a unique log in ID and password, to file his tax returns, review and update his profile, check for any due amounts and receive notification e-mails. The web portal is part of the Ministry's modernization process since it allows all stakeholders to have a direct and transparent access to all required information. The MoF amplified the disclosure and publication of information and launched a 24/7 call center, thus increasing the taxpayers' awareness, disseminating data and raising the level of transparency, as well as answering the taxpayers' multiple questions and inquiries. The MoF launched a targeted fiscal advertising campaign focusing on key programs that would inform the public of the new services and convey to them the importance of the Ministry's work. As such, the call center billboard and radio campaign generated an increase in calls that reached a staggering 62.21%. During the first two-week campaign, the number of incoming calls doubled. The taxpayers were hence instantly receiving accurate tax information, which helped decrease the discrepancies in their tax returns. Keeping up with the spirit of responding to the taxpayers' needs, the MoF established a partnership with the national postal service, LibanPost. The major efforts that the Ministry pulled to facilitate the lives of the citizens, coupled with the wide spread of LibanPost offices on the Lebanese territory, lead to an easier and rationalized submission and collection of the citizens' transactions. Hence, 100% of the Lebanese taxpayers who are not using electronic methods are now filing their tax returns solely through LibanPost. The yearly customer satisfaction study permitted the identification of several internal and external problems within the Ministry. Accordingly, short and long term solutions were formulated in concordance with the needs, goals and mission statements of the Ministry. In 2007, this study showed that the percentage of the taxpayers pleased with the Ministry's services reached 40%.

Who proposed the solution, who implemented it and who were the stakeholders?
The UNDP tax reform project team played a major role in setting up the appropriate reform environment needed for targeting the right goals. It undertook the elaboration of program charters and work plans as well as the development of the performance indicators that were primordial for the assessment of the achievements, enabling the concerned organizations to monitor the status of the reform program. It also heavily contributed to the implementation of the reform actions and the coordination with the numerous internal and external stakeholders. MoF civil servants succeeded in conveying the Ministry's messages to the Lebanese citizens and external parties through multiple publications (guides, leaflets, periodic reports, etc.) and notifications on the web portal. The Tax Administration put the new vision of the Ministry of Finance into practice through the implementation of the performance contract which involved transformations in the administration by the means of innovative methods, tools and techniques. The purpose of this project was to improve the efficiency in the delivery of government services. In order for the Lebanese taxpayers to fully benefit from what was offered to them, the need arose for a broad program that would encompass the Ministry as a whole. To this end, the support of private companies was crucial for the implementation of the initiatives. Such companies included: LibanPost for all tax transactions, a research oriented company for the MoF customer satisfactory study, media agencies for the audio-visual awareness campaigns, an outsourced customer management solution company for the 24/7 call center, in addition to private consultants, graphic designers, web developers… The collaboration of the Lebanese Transparency Association (LTA) - a non-Governmental organization that aims at fighting corruption at all levels of society -with the MoF aims at promoting transparency and accountability in the undertaken reforms. The Memorandum of Understanding that the Ministry signed with the LTA enabled the establishment of benchmark indicators according to international best practices and the agreement with the Ministry on specific milestones to monitor and report on all implemented programs with the aim of improving relation and communication with the public and civil society.

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.
In order to promote responsiveness in the public sector and to enhance the monitoring of the public opinion and the views of the community, the MoF demonstrated openness and paid particular attention to delivering conferences, seminars and workshops, in addition to regularly meeting with key actors of the economy. Recognizing the importance of empowering youth to become well-informed future leaders, the MoF has led a number of initiatives aimed at engaging youth in economic decision making and raising awareness of the role and functions of the Ministry. The development of performance indicators and the implementation of the performance contract aimed at improving accountability. The Tax Administration and the UNPD team were able to achieve such a goal through the evaluation of the efficiency and effectiveness of the services provided to the taxpayers. The survey that was conducted by a team of trained fieldworkers in all MoF departments allowed the assessment of the competence of the Ministry's employees, hence evaluating the taxpayers' satisfaction. The questionnaire was designed by a research oriented company and its results were submitted to all stakeholders. The MoF heavily improved transparency through data dissemination and public disclosure of information pertaining to most recent services provided by the Ministry. It put at the disposal of the public various reports such as Paris III progress reports that would shed light on the donor coordination and usage of funds. The many guides, pamphlets and newsletters that were developed during 2007 aimed at providing necessary tax and fiscal information to all citizens. The MoF created electronic mechanisms to increase the public’s ability to observe the Government decision-making process and procedures through the launching of the web portal. It permitted the access to e-services, such as online registration and filing, downloading all needed applications and forms and receiving information about the Ministry. The MoF cooperated with LTA to facilitate the public's ability to observe, monitor and analyze government decision-making and processes. The Ministry resorted to Media as a mean to promote good governance, foster equity and enhance transparency. The main goals of the advertising campaigns were to generate expectations, promote new services and maintain the level of awareness. Indeed, the massive media campaign was intended to notify the taxpayers of all recently launched services. As such, (a) several TV ad campaigns were aired on Lebanese stations to introduce the new LibanPost services; (b) the sonic branding pioneering initiative allowed the Ministry to have a distinctive identity and unique sound that is instantly identified by the citizens; (c) the billboard and radio campaigns were meant to introduce the newly launched call center; (d) trilingual leaflets were distributed through major newspapers and magazines to promote new services and initiatives - call center, LibanPost services, e-filing, empowering youth… - . Given that the proliferation of the currently adopted procedures for the various taxes complicates the harmonious application of existing laws to both the taxpayer and the administration, the MoF introduced the Tax Procedure Code (TPC) that is a transparent mechanism informing the taxpayer of his rights and obligations.

b. What were the key development and implementation steps and the chronology? No more than 500 words
The establishment of a performance contract and KPIs in 2006-2007 was considered to be an administrative reform that would revamp the way the Tax Administration handled and processed its work. Measurable objectives and targets are set on a regular basis through pre-defined indicators. A periodic benchmarking process determines whether or not said targets are reached, and follow-up of recent improvements enables the identification of the issues that need to be addressed. An "info center" created in 2006 to respond to the taxpayers' inquiries was expanded in 2007 with the launching of a 24/7 call center. In parallel, the Ministry's website was revamped and transformed into a web portal in 2007 to give all citizens a faster and easier access to news, publications and e-services. The TPC draft law was finalized at the end of 2006, unifying various tax procedures and defining taxpayers’ rights and obligations. Moreover, in order to enhance the transparency of the whole audit process, selection criteria based on risk analysis was developed and the MoF started sending the preliminary audit results to the taxpayers before the final notification asking for their input and feedback. During 2007, a research oriented company conducted a study in order to measure the taxpayer satisfaction level with the Ministry of Finance. Mystery shoppers visited the Ministry's departments and assessed the services offered to the citizens and the response of the Ministry's civil servants. With the aim of fighting corruption, The LTA Memorandum of Understanding with the Ministry of Finance was signed in 2007, allowing both parties to identify areas of cooperation in order to develop an appropriate work program that includes a timeline and specific deliverables that will be updated periodically. The Ministry of Finance has led a number of initiatives aimed at engaging youth in economic decision making, including the yearly "Get to know the Ministry of Finance" orientation program, the "Youth Economic" Forum, the month-long "Youth Internship" program. One of the major developments that are considered to be unique in the region was the introduction of a new advertising method that revolutionized the Ministry's advertizing scheme. The sonic branding enabled the Ministry of Finance to have a distinctive identity which put it on the front scene of the advertising sector. For that purpose, the assistance of a skilled team of musicians was needed in order to come up with a unique sound that would make the Ministry recognizable everywhere. The first step was to incorporate the new jingle in the call center radio and TV campaigns conducted at the end of 2007. Other communication tools in the same period included billboards, leaflets, guides, and progress reports, in addition to several TV ads pertaining to the services offered by LibanPost that aired on major Lebanese broadcasting channels.

c. What were the main obstacles encountered? How were they overcome? No more than 500 words
Being a rather new innovation in the administrations of the public sector, the development of performance indicators constituted a challenge for the Ministry. In fact, MoF employees were not used to incorporate such a concept in their everyday work. After a certain while, they started to perceive the benefits of implementing the KPIs; they were able to assess the outcomes of the new strategies and the reform milestones. Even though the new concept took a long period to be grasped, MoF employees were finally able to integrate this method of evaluation in their daily work. Due to the fact that the new innovative services, such as the call center, the sonic branding and the web portal required a certain technical know-how that the Ministry lacks, the solution resided in outsourcing those services to specialized private companies. The latter entailed the allocation of significant human and financial resources. In order to transfer basic tax knowledge to the staff of the private companies, several skilful and dedicated MoF employees were chosen to conduct essential massive trainings and to convey adequate information and details pertaining to all tax matters and to build a tree of knowledge.

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
Since all taxpayers are required to file their returns by post, LibanPost staff was allocated and trained accordingly and a communication campaign was launched to this purpose. An additional training program was essential for the employees working at the 24/7 call center in order for them to answer all queries in a direct and clear manner. Moreover, a tree of information by tax type that would feed the knowledge base was built by the Ministry. In the aim of introducing the e-services that enable taxpayers to file and process their transactions through the web, the required systems and procedures were developed. Offices were set-up, equipment was bought and installed and needed employees were selected and coached. Freelance consultants, web developers and graphic designers were hired, and the required know-how was made available through the UNDP tax reform team and the tax administration civil servants. Needed funds were disbursed to media channels (press, radio and television) in order to disseminate the audio and visual campaigns. Financial funds were also disbursed to private vendors, such as the call center outsourcing service. The costs of the new postal services were borne by the Ministry. Indeed, it should be noted that in order to promote equity among all citizens, the Ministry of Finance is covering all costs pertaining to the completion of tax transactions through LibanPost. With the purpose of collecting the data for the customer satisfaction study, a team of specially trained fieldworkers was put in charge of the interviews. They were guided by a fully-structured questionnaire prepared by a research oriented company. The Lebanese Transparency Association provided technical assistance to the Ministry of Finance in all issues related to transparency, accountability, responsiveness and fighting corruption, as well as in helping to disseminate information related to the various initiatives to the public.

Is the initiative sustainable and transferable?
The direct and permanent involvement of the Tax Administration in the reform efforts and implementation ensures its continuation and durability. The UNDP tax reform team's concentration on continuously identifying and training trainers ensures transferability of needed know-how and technical skills. The Administration holds the ownership of the procedures, innovations, procedure-driven and automated systems and designs, hence allowing the constant modernization of the processes and the establishment of a sustainable environment. As such, all implemented systems become irreversible, making the various MoF initiatives durable regardless of the political or administrative changes that might occur. The results of the tax reform initiatives were a success story and are being replicated throughout the public administrations. For instance and to name a few, the performance contract is a model that will shortly be duplicated in several other departments of the Ministry of Finance.

What are the impact of your initiative and the lessons learned?
The success of the initiatives necessitated several interconnected factors. The commitment of the Tax Administration to the reform program is considered to be a capital success factor. The Tax Administration's ownership of the systems and procedures and its continuous collaboration with the UNDP team allowed for the initiatives to be operational and sustainable. The MoF partnership with the private sector enabled the implementation of major reform actions, as well as the evolution and expansion of the Ministry's vision. The know-how and technical skills of the Administration staff, combined with the expertise of outsourced and specialized skills, benefitted all Lebanese citizens. Such a partnership encourages open communication and values the cooperation with private stakeholders; these latters are very much aware of the importance of recognizing the good practices of the Ministry and highlighting its many achievements and successes. The achievements of the Ministry of Finance are deeply rooted in the presence of a resolute and untiring will for reform, whereby the Ministry remains adamant to pursue reform programs and make their implementation possible regardless of any hardships and political dismay affecting the country.


Institution Name:		Ministry of Finance
Institution Type:		Government Agency
Contact Person:		Manal Assir
Title:		Tax Reform Program Manager
Telephone/ Fax:		961-1-397780; 961-3-890630
Institution's / Project's Website:		961-1-397858
E-mail:		manal.assir@finance.gov.lb
Address:		Ministry of Finance, 512, Corniche du Fleuve, Beirut, Lebanon
Postal Code:		2066 7109
City:		Beirut
State/Province:		Beirut
Country:		Lebanon

The Problem

Solution and Key Benefits

Actors and Stakeholders

(a) Strategies

(b) Implementation

(c) Overcoming Obstacles

(d) Use of Resources

Sustainability and Transferability

Lessons Learned

Contact Information