The Asian Development Bank (ADB) pledged its support for the government’s enhanced tax collection strategy of using digital technologies for a more efficient and aggressive tax administration, the Department of Finance (DOF) said in a statement yesterday.
Finance Secretary Ralph Recto recently met with the senior officials of the ADB at the DOF office in Manila and sought the support of the multilateral agency in enhancing the government’s digitalization program to facilitate inter-agency information sharing for improved revenue collection efficiency.
The ADB welcomed the proposal and affirmed its commitment to likewise strengthen cooperation on infrastructure modernization, particularly on public-private partnerships.
Both sides also agreed to work on developing pipeline projects and programs, particularly in green infrastructure and clean energy, under the $10- billion climate financing commitment of the ADB for the period 2024 to 2029.
The bank also expressed its willingness to extend support for the DOF’s refined tax reform proposals.
The ADB supports the Philippines’ continued efforts in creating a fair and efficient tax system that fosters inclusive and resilient economic growth through the $400-million Domestic Resource Mobilization policy-based loan.
The policy-based loan focuses on enhancing domestic resource mobilization policies and legal frameworks; modernizing tax administration through digital transformation; and strengthening international tax cooperation and exchange of information. A second subprogram is pipelined for 2025.
The bank is supporting the Bureau of Internal Revenue in its digitalization efforts through technical assistance that prepares an investment project in 2025.
