ADB’s Tax Hub for Domestic Resource Mobilisation and International Tax Cooperation
To ensure access to services, to fight inequalities and combat climate change, and to build resilience, Asia and the Pacific’s developing countries need to strengthen their ability to find new sources of revenue. However, tax yields in the region lack policy and institutional reforms to meet international standards and one of the main challenges for governments is to raise sufficient tax revenues while also promoting investment. Governments also need to mobilise resources to fight the two main existing issues within the current taxing system: base erosion and profit shifting as well as tax evasion.
The Asian Development Bank (ADB) identifies a lack of necessary collaboration and coordination on tax policies and revenue raising among its Developing Member Countries (DMCs) as an obstacle to reach sustainability and build inclusive development. In fact, without joint action to solve the challenges they face the region’s countries will risk planning and implementing policies that threaten regional integration, trade and investment.
To contribute to solving these issues the ADB launched an Asia Pacific Tax Hub. This open and inclusive platform aims to promote strategic policy dialogue, improve knowledge sharing, and strengthen coordination on tax policy and administration among regional finance ministries and tax authorities, international organisations, like ADB, IMF, OECD and World Bank, and also includes development partners and regional tax associations.
Through this engagement the ADB’s DMCs will be supported in the preparation of medium-term revenue strategies, roadmaps for the automation of tax administration, and proactive participation in international tax initiatives. The overall objective of the hub is to stimulate regional dialogue and knowledge sharing by providing regional and international resources on Domestic Resource Mobilisation (DRM) and International Tax Cooperation (ITC).
To read more about the ADB's Asia Pacific Tax Hub, please follow this link.