MANILA, PHILIPPINES (5 March 2008) - The Philippines, with assistance from the Asian Development Bank (ADB), plans to implement new tax policy reforms that will include improved collection methods and better prosecution of tax evasion cases.
ADB is extending a $500,000 technical assistance (TA) grant to support the Government's ability to implement tax policy reforms to improve revenue forecasts and collection. The Philippines is providing $100,000 to complete the funding requirement.
"This ADB assistance will support the Government's efforts to improve revenue collection and fiscal consolidation," said Kelly Bird, Economist of ADB's Southeast Asia Department. "The Government has made remarkable progress in recent years in improving tax collections, bringing its budget into balance, and lowering public debt while at the same time increasing spending in the social sectors. This success is now showing up in high economic growth and improved investor confidence in the economy."
The grant complements other ADB assistance in the Philippines, including support for the Government's fiscal consolidation efforts and for the justice sector to build capacities in the prosecution and adjudication of cases.
The TA will enhance cooperation between the Bureau of Internal Revenue (BIR) and the Department of Justice (DOJ), and establish better tracking methods for tax evasion cases, and establish legal training programs.