The Asian Development Bank (ADB) has launched the ‘Asia Pacific Tax Hub’ to enhance International Tax Cooperation.
i.The Hub will create an open and inclusive platform for promoting strategic policy dialogue, improving knowledge sharing & strengthening coordination on tax policy and administration among ADB members and development partners.
ii.It will maximise the regional and international resources to strengthen domestic resource mobilisation and international tax cooperation among ADB’s Developing Member Countries (DMCs).
Functions of the Tax Hub
i.The hub will support DMCs on 3 main building blocks – Preparation of Medium-Term Revenue Strategies (MTRS), roadmaps for automation of tax administration, and proactive participation in International Tax Initiatives.
ii.Through the hub, ADB will
- Coordinate with the International Monetary Fund (IMF) to support DMCs to formulate MTRS.
- Conduct assessments to prepare roadmaps for automation of tax administrations in DMCs.
- Facilitate policy dialogue with the Organisation for Economic Cooperation and Development (OECD), and stimulate DMCs to participate in developing an Inclusive Framework on Base Erosion and Profit Shifting, and the Global Forum on Transparency and Exchange of Information for Tax Purposes.
- Apply financial instruments to promote domestic resource mobilisation, adoption of international tax standards and strengthen technology investment by revenue agencies.
iii.ADB will establish a Secretariat to operationalize the hub. It will also organize a Steering Committee to bring together key development partners.
iv.The hub will organise a first high-level conference by the end of 2021.
Nirmala Sitharaman participates in 54th Annual Meeting of ADB 2021
Union Minister of Finance & ADB’s Governor for India Nirmala Sitharaman participated in ADB’s 54th Annual Meeting 2021, which took place virtually from May 3-5, 2021.
i.Nirmala Sitharaman highlighted the initiatives taken by India to fight COVID-19 in the Asia-Pacific region through the setting up of the SAARC (South Asian Association of Regional Cooperation) COVID-19 Emergency Fund.
iii.It also played a key role in global initiatives such as
- Access to COVID-19 Tools Accelerator (ACT-A), a cross-discipline support structure to enable partners to share resources and knowledge
- COVAX – A worldwide initiative aimed at equitable access to COVID-19 vaccines
ADB’s 5 Point Agenda
Ahead of the 54th Annual Meeting, ADB outlined an 5-point agenda to achieve lasting equitable recovery in Asia and the Pacific in the Post COVID-19 era.
- Placing climate actions at the centre of development
- Address inequality including the gender gap
- Promote high-quality green and digital infrastructure
- Deepen regional cooperation and integration
- Strengthen domestic resource mobilization
Recent Related News:
i.On February 15, 2021, The ADB signed INR 100 crore (USD 13.7 million) debt financing agreement with Multi-Specialty medical institute, Medanta to provide essential health care services and medical equipment to India.
About Asian Development Bank (ADB)
President – Masatsugu Asakawa
Headquarters – Mandaluyong City, Manila, Philippines
Members – 68 (including India)
Establishment year – 1966