IMF research shows better tax system design can raise revenue, growth without higher rates
7 Articles
7 Articles
IMF Finds Smarter Tax Rules Can Lift Revenue and Growth Without Rate Hikes
New IMF research demonstrates that reforming tax design and administration can generate additional revenue and accelerate economic growth without increasing statutory rates. From VAT neutrality to immediate investment expensing and stronger compliance, the gains are quantifiable and substantial across country income groups. Countries that modernize their systems stand to close fiscal gaps while supporting investment and jobs.
It proposes reforms to enable companies to demonstrate the VAT paid on their inputs and to facilitate the recovery of investment costs.
The International Monetary Fund (IMF) has published the section titled "Better Taxation to Support Growth" from its Fiscal Monitoring Report, which will be released on October 14. In almost all economies, governments...
The International Monetary Fund (IMF) has reported that poorly designed tax systems discourage investment and weaken labor force participation. The institution emphasized the need to mitigate these problems, noting that how governments collect revenue is as important as how much they collect.
The IMF has reported that poorly designed tax systems lead to significant economic costs. According to the report, VAT distortions can increase input costs by up to 9% in emerging markets and developing economies; reforms could strengthen growth.
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