Good morning, everyone. It is my great pleasure to welcome you to the fifteenth IMF-Japan High-Level Tax Conference for Asian Countries.
I would like to thank Japan’s Ministry of Finance for co-hosting this event, and for its generous and longstanding support. I am also grateful to my colleagues in the IMF’s Fiscal Affairs Department and the Regional Office for Asia and the Pacific here in Tokyo for organizing this annual event. I would also like to thank the participants, representing 20 countries in the region, for joining us.
We meet at a time of considerable uncertainty in the global economy. Two opposing forces are shaping the outlook. The conflict in the Middle East and resulting energy shock are weighing on activity and adding to inflation. At the same time, rapid advances in artificial intelligence and strong investment in technology are providing an important boost to growth. The net impact of these two forces differs across countries, depending on their macroeconomic vulnerabilities and their exposure to energy disruptions and AI.
For Asia, the picture is similarly nuanced. The region entered 2026 on a strong footing after showing considerable resilience to higher tariffs and trade policy uncertainty. At the same time, many Asian economies remain exposed to higher energy costs and continued uncertainty in the global trading system.
Globally, risks to the outlook are more balanced than they were at the Spring Meetings in April but remain tilted to the downside. Renewed geopolitical tensions, commodity price volatility, and further trade fragmentation could weaken growth and raise prices. Higher interest rates could also add to financing pressures, particularly in countries with elevated debt. And with fiscal buffers already stretched in many countries, governments have less room to respond to new shocks.
These developments make sound fiscal policy all the more important. Countries need to rebuild fiscal buffers while protecting essential development and social spending. For many countries, this will require not only spending better but also taxing better and raising revenue in ways that support growth.
This brings us directly to the central theme of this conference: domestic revenue mobilization. Strengthening domestic revenue is essential for creating fiscal space, supporting development priorities, and building resilience to future shocks. Our first session will take stock of revenue performance across Asia and discuss where countries have scope to raise more revenue and improve their tax systems through well-designed reforms.
How revenue is raised matters as much as how much is raised. Our forthcoming Fiscal Monitor will examine how the design of tax systems can support economic growth in a revenue-neutral way. The international tax landscape continues to evolve rapidly. We will discuss the future of the Global Minimum Tax following the Side-by-Side agreement, including its implications for tax policy, tax administration, investment incentives, and international cooperation.
We will also look at another increasingly important dimension of international cooperation: the exchange of tax information. Greater transparency and effective information exchange can help countries protect their tax bases and improve compliance as economic activity becomes increasingly global and digital.
Tomorrow, our attention will turn to important choices within domestic tax systems. We will discuss how governments can better measure and evaluate tax expenditures and consider the revenue and distributional implications of the changing tariff landscape.
Finally, we will look ahead. Our discussions on emerging issues in tax administration and tax policy, including compliance risk management and health taxes, will give delegates an opportunity to exchange views on the practical challenges they face—especially with aging populations and changing demographics—and the reforms they see as priorities.
The great value of this conference is precisely this exchange of experience. There is no single tax system or reform path that works everywhere. Learning what has worked in neighboring countries—and what has not—can help policymakers make better choices at home.
In Asia, the IMF supports these efforts through tailored policy advice and capacity development, including through our regional centers. The lessons and experiences shared at this conference also help us improve the support we provide.
I would like to conclude with one announcement. From next year, this High-Level Tax Conference will be integrated into the Tokyo Fiscal Forum. This will allow us to consider tax, spending, and broader fiscal policy issues in one forum. We look forward to continuing this important partnership with Japan and welcoming you back to Tokyo for this newly integrated forum next June.
