Asia Pacific Tax Hub
In a world reshaped by the COVID-19 pandemic, the Tax Hub will be instrumental in strengthening Domestic Resource Mobilization (DRM) and International Tax Cooperation (ITC) and in supporting developing member countries’ efforts to achieve the Sustainable Development Goals.
The Asia Pacific Tax Hub on domestic resource mobilization (DRM) and international tax cooperation (ITC) provides an open, inclusive, and pan-regional tax platform for:
The Asia Pacific Tax Hub will be dedicated to maximizing international and regional knowledge, expertise, and finance on DRM and ITC through close collaboration with finance and tax authorities, and development partners like the International Monetary Fund (IMF), the Organisation for Economic Co-operation and Development (OECD), and the World Bank.
The region lacks a pan-regional tax community that serves as a platform on DRM and ITC. Although there are several existing tax communities, they do not provide a platform for strategic policy dialogues and the coverage of economies are limited. Countries need to adopt strong policy and institutional reforms to raise tax yields to meet their Sustainable Development Goals (SDGs) and other structural challenges. In a globalized world, where cross border transactions are inevitable, they also need to do more to meet international tax standards and actively implement and enforce these rules.
The Asia Pacific Tax Hub is promoting the SDGs and the ITC initiatives, such as the Global Forum on Transparency and Exchange of Information for Tax Purposes and the Inclusive Framework on BEPS. It will also assist each developing member country to define different DRM and ITC goals, including: (i) a medium-term revenue strategy, in coordination with the Platform for Collaboration on Tax; and (ii) a road map for digitalization of tax administrations, which facilitates the introduction of digital tools. The synergy created through collaboration and coordination with development partners will ensure strong value addition and effectiveness in the implementation of necessary reforms.
The Asia Pacific Tax Hub is promoting constant dialogue and capacity development within Asia and the Pacific on DRM and ITC.
The Asia Pacific Tax Hub aims at developing a regional vision on the international tax agenda, and will host a series of regional conferences that will bring together policy makers and practitioners from both tax policy and tax administration agencies of DMCs to discuss specific topics of importance for the region. These dialogues will also assist in developing clear action plans that reflect regional and country priorities that address the key challenges faced by individual DMCs.
Building on the regional and country priorities identified through the strategic dialogues, the Asia Pacific Tax Hub will assist each DMC formulate country-specific medium-term revenue strategies that would be key tools to develop strong political commitments. In turn, these can serve as foundations for development coordination.
Technical assistance to be provided under the umbrella of the Asia Pacific Tax Hub will be conceptualized, developed, and implemented through close collaborative efforts among development partners and DMCs. Joint knowledge products could also be produced, using a bespoke approach that is sensitive to the unique challenges posed by different operating environments. The synergy created in this approach will guarantee strong value added and effective implementation of the reforms.
The use of technologies will help tax administrations by promoting effective, timely, and corruption-free delivery of public services to support greater accountability. These relatively new approaches across the region will be incorporated into the country-specific medium-term revenue strategies and promoted by the collaborative efforts among DMCs.
A world reshaped by the pandemic requires that DMCs address the DRM and ITC from a wider perspective, which includes leveraging tax policy measures to recover their strong growth trajectory and improve development outcomes, enhancing the transparency and accessibility of tax-related information. Use of advanced technologies will also help tax administrations by promoting effective, timely, and corruption-free delivery of public services to support greater accountability. These relatively new approaches across the region will be incorporated into the country specific medium-term revenue strategies and promoted by the collaborative efforts among development partners and DMCs.
ADB recognizes the need to strengthen its assistance to DMCs in stemming tax evasion and the erosion of domestic tax bases. ADB fulfills this role primarily by promoting ITC and supporting DMC efforts to: