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IMF proposes to replace wealth tax with taxing returns from wealth

WASHINGTON: Taxing the returns from wealth is generally less distorting and more equitable than a wealth tax, said Vitor Gaspar, Director of the Fiscal Affairs Department, IMF, during a briefing on the Fiscal Monitor held as part of the IMF Spring Meetings in Washington, Trend reports.

“There is a lot of concern about fair distribution of the tax burden and there is a particular concern about the concentration of wealth and income at the top of the distribution. In that context, many times one hears calls for taxation targeting the super-rich, one sees calls for wealth taxation. Our position at the IMF is that taxing the returns from wealth is generally less distorting and more equitable than a wealth tax,” he said.

Gaspar emphasized the importance of international cooperation, for example, in exchanging information to make tax avoidance and tax evasion harder.

“We do believe that international agreements like what was possible in the OECD, inclusive framework for corporate income taxation is a very import
ant asset. And we believe that countries and tax administrations should embrace the promise of technology to adapt the tax system and reinforce tax compliance,” he added.

The Spring Meetings of the International Monetary Fund and the World Bank Group kicked off on April 15.

The main ministerial meetings and events will take place April 17-19 with other events and activities taking place during the week, April 15-20.

At the heart of the gathering are meetings of the joint Development Committee and the IMF’s International Monetary and Financial Committee, which discuss progress on the work of the World Bank Group and the IMF.

The Spring Meetings bring together central bankers, ministers of finance and development, parliamentarians, private sector executives, representatives from civil society organizations and academics to discuss issues of global concern, including the world economic outlook, poverty eradication, economic development, and aid effectiveness.

Source: Trend News Agency