Washington-based World Bank has committed to aid the Philippines in improving tax collections by taking advantage of digitalization initiatives.
On the sidelines of the World Bank-International Monetary Fund Spring Meetings in Washington, Finance Secretary Ralph Recto met with officials of the World Bank led by its president, Ajay Banga, to discuss key areas for development.
Recto said the World Bank will support the full digitalization of the country’s tax system to raise revenue generation and fix leakages.
Banga emphasized the need to build a solid digital infrastructure in the long term, which involves creating a digital identity, a real-time payment structure and a reliable document storage system for the government to get citizens on board and enhance the efficiency of public services.
As such, the World Bank will provide a team that will conduct workshops and assist the Department of Finance in enhancing its digital infrastructure to enhance tax payment and collection efficiency.
The World Bank team will work with the government in planning and prioritizing digitalization strategies focusing on increasing revenues and long-term benefits.
Apart from digitalization, the World Bank also expressed support for the administration’s infrastructure program through advisory works on several public-private partnership projects.
The multilateral development bank is also keen on promoting entrepreneurial opportunities for young people in the country, particularly by establishing entrepreneurial centers and providing wider access to seed capital through partnerships with local venture firms.
The World Bank likewise offered support for the country’s agriculture sector to improve productivity and profitability to address food security while reducing emissions through technological practices.
All areas tackled are expected to be aligned and reflected in the new country partnership framework that the World Bank is crafting for the Philippines.
As of last year, the World Bank’s International Bank for Reconstruction and Development is the Philippines’ third largest official development assistance partner with a total ODA of $8.2 billion.
Source: Philstar
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