“ADB supports the government’s DRM program, which will result in a higher tax-to-gross domestic product (GDP) ratio and ensure sustainable financing for the country as it sets out to achieve its goals under the Philippine Development Plan (PDP) 2023‒2028.” “The program recognises that DRM reforms necessitate not only raising revenue, but also designing a revenue system that fosters inclusiveness, encourages good governance, promotes investments and job creation, reduces inequality, and tackles climate change,” said ADB Senior Economist for Public Finance Aekapol Chongvilaivan.
It addresses the country’s need to tackle discrepancies in tax policy frameworks to boost tax compliance, reduce tax avoidance, and raise more revenues from activities and products that have a major impact on the environment or contribute to climate change. The Domestic Resource Mobilisation (DRM) Program Subprogram 1 is ADB’s first policy-based loan dedicated to DRM reform. The Asian Development Bank (ADB) has approved a US$400 million loan to help the Philippines achieve its medium-term fiscal strategy and finance its post-pandemic economic recovery through a stronger focus on revenue mobilisation, including modernizing tax administration, systems, and processes.
