IMF warns governments on the best Tax operations.

By; Our reporter

13^th July 2020

The International Monetary Fund (IMF) has advised governments to work on tax systems reforms, tax avoidance and evasion reduced, to ensure an economic recovery in which everyone pays their share amidst the existence of COVID-19.

IMF Deputy Director, Fiscal Affairs Department, Victoria Perry says that the IMF has made emergency COVID-19 funding available, particularly to those countries with developing economies. This includes   some USD 250 billion issued in the form of financial assistance and debt service relief, to some 77 member countries as a short term measure in response to the pandemic.

Uganda, for instance, received  USD 491.5 million (1.9 trillion Shillings) in emergency funding to address the impact left by the coronavirus on the economy. The money was approved under the Rapid Credit Facility program that is meant to help poor countries pick up pieces after being battered by the virus.

Many other governments are using this funding to offer stimulus packages, and a wide array of measures to help businesses and citizens get back on their feet.

However, Perry, an expert on taxation says that the stop-gap measures will not be enough to fix many of the underlying problems of the global economy, which include growing inequality within countries, and the ability of multinational enterprises to legally minimise corporate taxes.