Middle East nations must broaden tax bases, says IMF chief

Countries in the Middle East should build broader tax bases to fund infrastructure projects and social spending, International Monetary Fund (IMF) managing director Christine Lagarde said at an economic conference in Morocco on Tuesday.

“A key priority is building broader and more equitable tax bases. All must pay their fair share, while the poor must be protected,” she said.

This will allow the region’s governments to increase spending on social safety nets, health and education services than the current 11 percent of gross domestic product in the region.

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

She added that more efforts were also required to boost the private sector, noting that there was a need to ensure better access to finance, a more favorable business environment and fewer barriers such as red tape.