The World Bank has agreed to assist the Philippines in enhancing its tax collection efforts through the full digitalisation of its tax system, following discussions held at the World Bank-International Monetary Fund Spring Meetings in Washington.
The meeting, involving Finance Secretary Ralph Recto and World Bank President Ajay Banga, highlighted the need for robust digital infrastructure to support the initiative.
Secretary Recto stated to the media at the meetings that the comprehensive digitalisation effort would help to increase revenue collection and streamline tax administration, addressing both efficiency and leakage issues.
World Bank President Banga emphasised the critical elements of this infrastructure, which in the long term should include developing a digital identity for citizens, establishing a real-time payment system, and securing a reliable document storage system.
The World Bank has committed to sending a team to the Philippines to conduct workshops and assist the Department of Finance in enhancing its digital infrastructure, according to the two leaders. This team will focus on strategic planning to maximise the potential benefits of digitalisation in tax collection.
Additionally, while the main focus remains on digitalisation, the World Bank will also offer guidance on infrastructure projects and support the enhancement of entrepreneurial opportunities for young Filipinos by facilitating access to seed capital and establishing entrepreneurial centres.
Support will also extend to the agricultural sector to improve productivity and profitability, which are essential for food security and reducing emissions through advanced technological practices.
These various initiatives will be integrated into the new country partnership framework that the World Bank is developing for the Philippines. Notably, the World Bank’s International Bank for Reconstruction and Development has provided significant development assistance to the Philippines, amounting to US$8.2 billion, making it the country’s third-largest official development assistance partner to date.
This collaboration marks a significant step towards the digitalisation of public services in the Philippines, aiming to foster a more efficient and transparent tax system.
Featured image credit: Edited from Freepik
