THE Asian Development Bank (ADB) on Monday launched an Asia-Pacific Tax Hub to create an open and inclusive platform to promote strategic policy dialogue, improve knowledge sharing, and strengthen coordination on tax policy and administration among ADB, its members, and development partners.

The Manila-based bank said the hub will maximise regional and international resources to strengthen Domestic Resource Mobilisation (DRM) and International Tax Cooperation (ITC) in ADB's developing member countries.

" DRM has emerged as a major strategic priority for our developing members at this moment. It will be vital in the effort to address debt sustainability and to achieve the Sustainable Development Goals (SDGs)," ADB President Mr Masatsugu Asakawa said during the 54th Annual Meeting of the Board of Governors. " The lack of a pan-regional tax community has been a unique and significant shortcoming for Asia and the Pacific."

The hub will support developing Asia-Pacific nations on three main building blocks – preparation of Medium-Term Revenue Strategies (MTRS), roadmaps for the automation of tax administration, and proactive participation in international tax initiatives.

The hub will play a key role in these agendas by stimulating regional dialogue and knowledge sharing on needed reforms.

Through the hub, ADB will coordinate with the International Monetary Fund (IMF) to support developing nations as they formulate country-specific MTRS, with activities such as regional workshops and needs assessments. They will also facilitate policy dialogue with the Organisation for Economic Cooperation and Development (OECD) and stimulate proactive participation in the Inclusive Framework on Base Erosion and Profit Shifting (BEPS) and the Global Forum on Transparency and Exchange of Information for Tax Purposes.

The hub will allow the ADB to apply its financial instruments, such as policy-based and project lending, and technical assistance to promote DRM, adoption of international tax standards, and strengthened technology investment by revenue agencies.

The ADB said it will establish a secretariat to operationalise the hub and plans to organise a steering committee to bring together key development partners. The hub will organise its first high-level conference by the fourth quarter of 2021 to report on progress and discuss next steps.