IMF Says Better Tax Design Boosts Growth
The IMF reported that governments can increase revenue and economic growth without raising tax rates by improving tax system designs. Fixing distortions in VAT and corporate taxes could significantly expand capital stock and GDP output globally.
Governments can accelerate growth and lift revenue without hiking tax rates by repairing structural flaws in their tax codes, the IMF said on Monday. Avoidable tax distortions are dragging down global economic output, according to the lender's latest research. The findings arrive ahead of the IMF-World Bank annual meetings in Bangkok next week.
