ADB warns Asian governments on additional taxes

The Asian Development Bank (ADB) has urged Asian governments to be cautious in implementing additional taxes that would likely be a burden to consumers. The Manila-based multilateral lender said the mobilisation of tax revenues can be done in the medium term, especially as economies are just starting to recover from the pandemic. The ADB agrees that mobilisation of tax revenue holds the key to financing higher government spending but it warns of the timing of implementing additional taxes. ADB Economic Research and Regional Cooperation Department adviser Donghyun Park said Asian governments do need to be very careful in mobilising more taxes in this kind of uncertain and fragile growth environment.