$100-million BIR digitalization loan studied by ADB

THE Asian Development Bank (ADB) said it is conducting a feasibility study on the Bureau of Internal Revenue’s (BIR) digitalization project, which is expected to go up for approval next year.

“The digitalization project is currently at the feasibility stage and will need to go through both the Philippine government and ADB appraisal processes before progressing for approval, currently targeted in 2027,” ADB Country Director Andrew Jeffries told ����ý via e‑mail on Tuesday.

According to the bank’s website, the BIR is seeking a $100 million to finance its digital transformation initiative.

Last week, the BIR said that it met with bank officials to discuss key developments in the agency’s digital reform initiatives.

“Discussions covered policy actions supporting tax modernization, particularly digitalization, inter-agency coordination, and process improvements,” it said.

Mr. Jeffries said digitalization is a key pillar of improving taxpayer services, as it improves transparency, fairness, processing times, and the ease of tax filing and payment.

“A key aspect of the proposed project is the integration of new and existing functions into an integrated taxpayer portal, which would centralize all taxpayer services in a single window, reducing administrative burden,” he added. 

The ADB is providing technical assistance on the digitalization project, including client-facing systems, which will require institutional reforms within BIR

“Separately, ADB is also working with the BIR on international tax reforms and capacity development,” he said.

Meanwhile, the ADB said that it is looking to expand the Anti-Red Tape Authority’s (ARTA) National Effort for the Harmonization of Efficient Measures of Inter-related Agencies (NEHEMIA) program to more sectors.

The ADB and ARTA have completed studies on government process improvements with regard to the permit processes for the data center and renewable energy industries.

“The government is now working with National Government agencies and LGUs on joint memorandum circulars to implement key recommendations of the report,” an ADB spokesperson said.

“ADB continues to provide ARTA with technical support on this, as well as to extend the NEHEMIA process to cover more sectors. The program is extending the NEHEMIA process to at least two other sectors,” it added.

The ADB said the target of the NEHEMIA program is to reduce the average number of days it takes to obtain pre-development permits and licenses by 20% by 2028.

Secretary Ernesto V. Perez, director general of ARTA, said the ADB will be expanding its assistance to include mining and agriculture.

“For the mining sector, ADB will provide technical assistance to broaden the existing mapping and streamlining to cover the other stages of the mining project lifecycle from construction and development until decommissioning,” he told ����ý via Viber on Tuesday.

“For the agriculture sector, the support will focus on regulatory mapping and the streamlining of regulations related to cold storage and warehousing of livestock,” he added.

He said a meeting with the ADB next week will finalize the program’s timeline. — Justine Irish D. Tabile