ADB SUPPORTS ENHANCED TAX COLLECTION STRATEGY

THE Asian Development Bank (ADB) has vowed to support Finance Secretary Ralph Recto’s core enhanced tax collection strategy of using digital technologies for a more efficient and aggressive tax administration.

In a statement, the Finance department said Recto recently met with senior officials of ADB where he cited the need to have more unified inter-agency coordination among national and local agencies to harmonize records of registered taxpayers and optimize tax collection efficiency.

The ADB, through the USD400-million Domestic Resource Mobilization policy-based loan, supports the country’s efforts to create a fair and efficient tax system.

The policy-based loan aims to enhance domestic resource mobilization policies and legal frameworks; modernize tax administration through digital transformation; and strengthen international tax cooperation and exchange of information.

A second subprogram is pipelined for 2025.

The ADB is also supporting the Bureau of Internal Revenue in its digitalization efforts through technical assistance that prepares an investment project in 2025.

The DOF said the ADB also vowed to continue supporting the government in delivering more effective and innovative infrastructure projects through the Infrastructure Preparation and Innovation Facility (IPIF).

The IPIF is a technical assistance loan provided by the ADB to support initiatives of the Department of Transportation and the Department of Public Works and Highways in preparing, implementing, and managing public infrastructure investments.

Both sides also agreed to work on developing pipeline projects and programs, particularly in green infrastructure and clean energy, under the USD10 billion climate financing commitment of the ADB for the period 2024 to 2029.

During the meeting, Recto informed the ADB of the government’s efforts to attract foreign and domestic investments. /