The International Monetary Fund (IMF) and the U.S. government’s Millennium Challenge Corporation (MCC) have partnered to provide capacity-building support for the reform and modernisation of tax administration in the Philippines. This is the IMF’s first agreement of this kind with the United States.
Under the agreement, MCC will contribute US$4.6 million for technical assistance by the IMF’s Fiscal Affairs Department to help the Philippines Bureau of Internal Revenue (BIR) improve its revenue administration policies and procedures. This will pay for a resident advisor to the BIR and a significant number of short-term technical assistance missions by IMF experts to assist with a wide variety of technical tax administration issues.
The funding is part of MCC’s US$434 million poverty reduction compact with the Republic of the Philippines, which includes a US$54.3 million investment to computerize and streamline business processes in the BIR. The 40-month project will bolster the effectiveness of revenue collection and reduce opportunities for corruption.
MORE ARTICLES ON TAX