THE WORLD BANK and International Monetary Fund (IMF) are launching an initiative to help developing countries like Barbados strengthen their tax systems.
According to an IMF release yesterday, analysis suggests that many lower-income countries had the potential to increase their tax ratios by at least two to four per cent of GDP, without compromising fairness or growth. Raising additional revenues, it said, would allow developing countries to fill financing gaps and to promote development.
The announcement came ahead of the global Financing for Development conference in Ethiopia this week.
“A strong revenue base is imperative if developing countries are to be able to finance the spending they need on public services, social support and infrastructure,” said IMF managing director Christine Lagarde. (GE/PR)
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