IMF: Middle East must broaden tax bases

Middle Eastern countries should pursue fiscal policies to support growth and build broader tax bases to fund infrastructure projects and social spending, IMF Managing Director Christine Lagarde said today.

“A key priority is building broader and more equitable tax bases. All must pay their fair share, while the poor must be protected,” Largarde told an economic conference in Marrakech, Morocco, according to a transcript of the speech.

That would allow them to spend more on social safety nets, health and education services than the current 11 per cent of GDP in the region – less than 19 per cent in emerging Europe.

“Fiscal policy can and must be redesigned to support inclusive growth in the region,” Largarde said.

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