Asian Development Bank launches tax hub to enhance international tax cooperation

The Asian Development Bank has launched a 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 members and development partners. The Asia Pacific tax hub will maximize regional and international resources to strengthen domestic resource mobilisation and international tax cooperation in ADB’s developing member countries. 

ADB President Masatsugu Asakawa said,” Domestic resource mobilisation has emerged as a major strategic priority for our developing member countries at this moment. It will be vital in the effort to address debt sustainability and to achieve the Sustainable Development Goals.” He further said, the lack of pan-tax regional community has been a unique and significant shortcoming for Asia and the Pacific.

The hub will support developing member countries on three main building blocks like preparation of medium term revenue strategies, roadmap for automation of tax administration and proactive participation in international tax initiatives. Through the hub, ADB will coordinate closely with the International Monetary Fund (IMF) to support developing member countries as they formulate country specific medium term revenue strategies. It will conduct need assessments to prepare roadmaps for the automation of tax administration in developing member countries, and support their implementation in collaboration with developing partners and leading countries.

The hub will facilitate policy dialogue with the Organization for Economic Cooperation and Development (OECD) and stimulate proactive participation of domestic member countries in the inclusive framework on Base Erosion and Profit Shifting and the Global Forum on Transparency and Exchange of Information for Tax Purposes. Besides, it will apply financial instruments like policy based  and project lending and technical assistance to promote domestic resource mobilisation, adoption of international tax standards and strengthened technology investment by revenue agencies. The hub will organize a first high level conference by the fourth quarter of 2021.