• Wednesday, Feb 08, 2023
  • Last Update : 09:24 am

ADB to establish regional hub for DRM, tax cooperation

  • Published at 05:32 am September 17th, 2020
Photo showing the Asian Development Bank on the premise gate Collected

It will be an open and inclusive platform, with a focus on South–South policy dialogue

The Asian Development Bank (ADB) is set to establish a regional hub to promote knowledge sharing and strengthen cooperation on tax policy and tax administration across economies in Asia and the Pacific and their development partners.

“I firmly believe that one of the keys to success in achieving the Sustainable Development Goals (SDGs) in a world reshaped by Covid-19 will lie in strengthening domestic resource mobilization (DRM) and international tax cooperation (ITC),” said ADB President Masatsugu Asakawa in a seminar at ADB’s 53rd Annual Meeting on Thursday.

The regional hub on DRM and ITC will bolster close collaboration among finance and tax authorities of developing economies; international organizations such as the International Monetary Fund (IMF), the Organisation for Economic Co-operation and Development (OECD), and the World Bank; and regional tax associations.

Despite many developing economies having maintained strong and steady gross domestic product (GDP) growth in recent years, tax yields have not increased proportionately, ADB noted.

Even prior to the pandemic, many economies did not achieve a minimum tax yield of 15% of GDP—a level now widely regarded as the minimum required for sustainable development. 

The Covid-19 pandemic has worsened the situation due to increased pressure on economies’ expenditures and a decrease in tax revenue, leaving little room to further increase external borrowing.

Participants in the seminar discussed how governments must balance efforts to raise tax revenues and promote investments that can contribute to a robust recovery from the pandemic, and the need to earn the trust of taxpayers while seeking to increase the tax base.

Also Read- ADB forecasts strong recovery for Bangladesh economy in FY21

To improve tax yields in a fair and equitable manner, governments must also cooperate more closely, including managing aggressive tax planning and combat tax evasion, they said. 

Such cooperate requires a higher level of participation in international initiatives such as the Inclusive Framework on BEPS (base erosion and profit shifting) and the Global Forum on Transparency and Exchange of Information for Tax Purposes, they added.

The regional hub will serve multiple functions such as institutional and capacity development, including the exchange of information; knowledge sharing across partners, international financial institutions, bilateral revenue organizations, and developing economies; and collaboration and development coordination across development partners.

It will be an open and inclusive platform, with a focus on South–South policy dialogue. The regional hub will seek to bring together practitioners from tax policy bodies as well as tax administration bodies of developing economies to achieve meaningful progress in tax reform.

The synergy created in this hub will ensure strong value addition and effectiveness in the implementation of necessary reforms.

In establishing the hub, ADB will also mainstream DRM and ITC in its operations such as technical assistance and policy-based lending to help governments enhance their capacity for DRM and adoption of international tax standards.

Also Read- ADB: Developing Asia to shrink for first time in nearly six decades

Seminar speakers included Japan Deputy Prime Minister, Minister of Finance, and Minister of State for Financial Services Taro Aso; Indonesian Minister of Finance Sri Mulyani Indrawati; IMF Director for Fiscal Affairs Department Vito Gaspar; and OECD Director of the Centre for Tax Policy and Administration Pascal Saint-Amans. New Zealand Inland Revenue Commissioner and Chief Executive Naomi Ferguson moderated the seminar.

Facebook 50
blogger sharing button blogger
buffer sharing button buffer
diaspora sharing button diaspora
digg sharing button digg
douban sharing button douban
email sharing button email
evernote sharing button evernote
flipboard sharing button flipboard
pocket sharing button getpocket
github sharing button github
gmail sharing button gmail
googlebookmarks sharing button googlebookmarks
hackernews sharing button hackernews
instapaper sharing button instapaper
line sharing button line
linkedin sharing button linkedin
livejournal sharing button livejournal
mailru sharing button mailru
medium sharing button medium
meneame sharing button meneame
messenger sharing button messenger
odnoklassniki sharing button odnoklassniki
pinterest sharing button pinterest
print sharing button print
qzone sharing button qzone
reddit sharing button reddit
refind sharing button refind
renren sharing button renren
skype sharing button skype
snapchat sharing button snapchat
surfingbird sharing button surfingbird
telegram sharing button telegram
tumblr sharing button tumblr
twitter sharing button twitter
vk sharing button vk
wechat sharing button wechat
weibo sharing button weibo
whatsapp sharing button whatsapp
wordpress sharing button wordpress
xing sharing button xing
yahoomail sharing button yahoomail