The Millennium Challenge Corporation’s (MCC) $7.4 million threshold program with the Government of São Tomé and Príncipe is focused on improving their performance on the policy areas measured by MCC’s Fiscal Policy and Business Start-up eligibility indicators. Specifically, program will help the Government of São Tomé and Príncipe to improve its performance on the Fiscal Policy indicator by increasing revenue as a result of improved tax and customs administration and enforcement. It also seeks to improve performance on the Days to Start a Business and Cost of Starting a Business indicators by streamlining business registration procedures.

• Draft legislation and identify administrative procedures necessary to streamline business registration, to include the establishment of a “one-stop shop” for business registration and other regulatory reforms;
• Develop recommendations for implementation of new business registration procedures;
• Draft work procedures and recommendations for organizational restructuring required to implement new business registration legislation.

Modernize the Customs Service by:

• conducting an assessment of all facilities,
• upgrading Customs Service software by installing ASYCUDA World,
• analyzing and supporting implementation of new legislation and regulations,
• conducting training activities,
• establishing a customs cooperation council along with the local trade community to encourage compliance,
• providing support for entry into the World Customs Organization, and
• providing basic inspection, communications and transport equipment

Enhance customs operations and procedures; and enhance professionalism in the Customs Service by:

• implementing procedures to limit discretionary actions,
• developing and implementing a Customs Code of Ethics and Conduct,
• establishing, and providing training for, an Ethics Council in the Ministry of Planning and Finance.

• Provide technical assistance to develop and implement new tax legislation and regulations
• Improve the integrity of the taxpayer registration system; and
• Strengthen the taxpayer accounting system.

• Establish information technology infrastructure to connect ministries in order to identify unregistered taxpayers and non-filers;
• Improve collection procedures and management;
• Provide technical assistance to improve auditing procedures; and
• Improve the ability of tax officials to conduct on-site canvasses, audits and collections activities.