KUALA LUMPUR (May 3): The Asian Development Bank (ADB) has launched an Asia Pacific Tax Hub to create an open and inclusive platform to promote strategic policy dialogue, improve knowledge sharing, and strengthen coordination on tax policy and administration among ADB, its members and development partners.
In a statement today, ADB said the hub will maximise regional and international resources to strengthen domestic resource mobilisation (DRM) and international tax cooperation in the bank’s developing member countries (DMCs).
“The hub will support DMCs on three main building blocks: preparation of medium-term revenue strategies (MTRS), roadmaps for the automation of tax administration, and proactive participation in international tax initiatives,” it said.
Through the hub, ADB will coordinate closely with the International Monetary Fund to support DMCs as they formulate country-specific MTRS, with activities such as regional workshops in collaboration with the Platform for Collaboration on Tax and diagnostic tools like the Tax Administration Diagnostic Assessment Tool, among others.
The bank will also conduct needs assessments to prepare roadmaps for the automation of tax administrations in DMCs, and support their implementation in collaboration with development partners and leading countries in this area.
ADB will also facilitate policy dialogue with the Organisation for Economic Co-operation and Development and stimulate proactive participation of DMCs in the Inclusive Framework on Base Erosion and Profit Shifting and the Global Forum on Transparency and Exchange of Information for Tax Purposes.
Through the hub, the bank will apply its financial instruments, such as policy-based and project lending, and technical assistance to promote DRM, adoption of international tax standards, and strengthened technology investment by revenue agencies.