THE NEW TAX BURDEN

Following the advice of the IMF in its document “FISCAL ADJUSTMENT STRATEGY AND MEASURES TO PROTECT LOW-INCOME HOUSEHOLDS” of February 2006, the Ministry of Finance decided to apply some of its recommendations in the reform of our tax system. The IMF, in its standard application in most countries, usually argues in favor of streamlining the tax expenditures or tax concessions. 

Managing capital inflows

The recent IMF policy discussion paper-“Capital Inflows and Balance of Payments Pressures—Tailoring Policy Responses in Emerging Market Economies (EMEs).” prepared by Atish Ghosh, Manuela Goretti, Bikas Joshi, Uma Ramakrishnan, Alun Thomas, and Juan Zalduendo dated  June 2008  raises some of the very issue that we have been discussing recently on the appropriate policy responses to the surge in capital inflows.