ADB to support Recto’s core enhanced tax collection strategy––digitalization

The Asian Development Bank (ADB) will provide support for Finance Secretary Ralph G. Recto’s core enhanced tax collection strategy of using digital technologies for a more efficient and aggressive tax administration.

The statement came after Secretary Recto emphasized, during a meeting with ADB senior officials, the need to have more unified inter-agency coordination among national and local agencies to harmonize records of registered taxpayers and optimize tax collection efficiency.

The move is in line with President Ferdinand R. Marcos, Jr.’s directive under Executive Order (EO) No. 170 mandating government agencies to adopt digital payment systems for government disbursements and collections.

The ADB supports the Philippines’ continued efforts in creating a fair and efficient tax system that fosters inclusive and resilient economic growth through the USD 400-million Domestic Resource Mobilization policy-based loan.

The policy-based loan focuses on enhancing domestic resource mobilization policies and legal frameworks; modernizing tax administration through digital transformation; and strengthening international tax cooperation and exchange of information. A second subprogram is pipelined for 2025.

Moreover, the Bank is supporting the Bureau of Internal Revenue (BIR) in its digitalization efforts through technical assistance that prepares an investment project in 2025.

The ADB affirmed its commitment to likewise strengthen cooperation with the Philippine government on infrastructure modernization, particularly on public-private partnerships (PPPs).

The ADB said it will continue to work on supporting the government in delivering more effective and innovative infrastructure projects through the Infrastructure Preparation and Innovation Facility (IPIF).

The IPIF is a technical assistance loan provided by the ADB to support initiatives of the Department of Transportation (DOTr) and the Department of Public Works and Highways (DPWH) in preparing, implementing, and managing public infrastructure investments.

Both sides also agreed to work on developing pipeline projects and programs, particularly in green infrastructure and clean energy, under the USD 10 billion climate