The postponement of 2012 VAT Lawimplementation means that the higher tax revenues expectedfrom the measure will be delayed, and additional sources ofrevenue need to be considered. Model simulations suggestthat implementation of the VAT Law starting July 1, 2017 atthe originally proposed rate of 15 percent would haveyielded additional tax revenue of about 1 percent of GDP inFY2018, and 0.8 percent of GDP in FY2019. Several measurescould be considered to make up this short-fall. Automationand process simplification could bring additional taxrevenues ranging from 0.3 to 0.7 percent of GDP in FY2018.There is substantial scope for efficiency gains in shiftingfrom a type-of-tax towards a function-based taxadministration, facilitating compliance. Carbon taxes couldgenerate resources equivalent to 1 percent of GDP, andtobacco taxes could raise a further 1 to 2 percent of GDP.Rationalizing tax incentives and exemptions can alsogenerate more revenue. The proposed administrative measures,including expanding tax withholding mechanisms, would notrequire legislative changes and could be implemented in theshort term, boosting revenue during the current fiscal year(FY2018). The other tax policy measures could be consideredfor implementation in the medium term and would requirecorresponding legislative initiatives.