A taxing problem: How to ensure poor, vulnerable don’t shoulder the cost of COVID-19 crisis – Saudi Gazette

A taxing problem: How to ensure poor, vulnerable don’t shoulder the cost of COVID-19 crisis – Saudi Gazette

NEW YORK “” In the wake of the unprecedented COVID-19 crisis, tax systems should be reformed, and tax avoidance and evasion reduced, to ensure an economic recovery in which everyone pays their share, said the International Monetary Fund (IMF).

Taxes pay for many of the things that are fundamental to functioning societies across the world, such as schools, health care, and social services. Money raised through taxation is crucial to ensuring that these services are maintained during the COVID-19 crisis.

But, when businesses shut down, and millions lose their jobs, as has happened during the current crisis, tax revenue plummets.

In the short-term, governments have put together stimulus packages, and a wide array of measures to help businesses and citizens get back on their feet.

The IMF is tracking these efforts, which range from a $540 billion European Union package, which includes funding to help the hardest-hit states; to a 'cash for work' program in Cambodia; and, in Samoa, a six-month reduction in private utility bills.

Damage controlAt the same time, the IMF has made emergency COVID-19 funding available, particularly to those countries with developing economies. The IMF has made some $250 billion available, in the form of financial assistance and debt service relief, to