Step up tax collection, energy efficiency: IMF

The International Monetary Fund (IMF) has suggested expediting tax collection and raising energy efficiency by reducing subsidies to pave the way for prioritising social and development spending towards economic boost. ‘Tax collections need to be stepped up to create more space for priority social and development spending. Further bringing down the cost of inefficient and regressive energy subsidies will also create room to boost spending on well-targeted social safety nets to protect the poor,’ said Naoyuki Shinohara, Deputy Managing Director (DMD) of IMF, at the end of his 2-day visit to Bangladesh. The international lending agency also assured to work closely with Bangladesh for reforming its policies and attaining growth as well as reduction poverty. The country now has a stronger external and domestic position, with international reserves more than twice the low levels of late 2011, a prudent overall fiscal stance, and lower underlying inflation, he observed, according to BSS.