The coronavirus disease (COVID-19) pandemic has increased pressure on government budgets and public debt across Asia and the Pacific due to a rise in large-scale countercyclical expenditure programs and a decrease in tax revenues.

At the same time, governments are facing the need to secure additional financial resources to mitigate pandemic risks while promoting growth recovery and resilience measures critical to achieving the Sustainable Development Goals such as greater investment in education, health, and combatting climate change.

The accelerating digitalization of the economy due to COVID-19 and the positive impact it can have on job creation and growth has the potential to boost domestic resource mobilization vital to effective pandemic responses. Managing these dynamics poses many difficulties for the region’s policy makers, however.

This Asian Development Bank Institute (ADBI) virtual policy dialogue will feature new research examining options for optimizing taxation in Asia and the Pacific in the digitalization era and addressing related challenges. It will also spotlight the latest developments in revenue administration in the region and their implications for the taxation of the digital economy.