WB, IMF to help developing countries strengthen tax systems

The World Bank and the International Monetary Fund (IMF) will soon launch a new initiative to help developing countries strengthen their tax systems, an IMF statement, received in Dhaka, said on Saturday. Referring to an analysis, the statement said many lower-income countries have the potential to increase their tax ratios by at least 2-4 per cent of GDP, without compromising fairness or growth, and the additional revenues will allow developing countries to fill financing gaps and to promote development. The WB and IMF would launch the new initiative soon to help the developing countries explore the potential. The announcement came ahead of the "Financing for Development" conference, to be held in Addis Ababa, Ethiopia, on July 13-16, according to a news agency.