Pandemic pressure warns the IMF that countries may have to raise taxes to tackle the climate crisis
The International Monetary Fund warns that the pandemic has made it much more difficult for governments to reach their green goals.
It said the country may have to raise taxes to pay for environmentally friendly policies.
The IMF’s comments came just weeks before the UK hosted the UN Cop26 Climate Change Conference. The conference is touted by Britain as a milestone in the fight against global warming.
Green Tax: The International Monetary Fund warns that countries may have to raise taxes to pay for environmentally friendly policies such as renewable energy programs.
The current level of £ 65 trillion in public debt around the world makes it difficult for underfunded countries to justify investing in environmentally friendly projects, according to the IMF’s latest fiscal monitor released yesterday. Probably.
Just this week, China announced plans to build more coal-fired power plants.
The IMF categorically asserts that building a green economy is essential to future prosperity.
But it states: “Significant differences between countries in predicting pandemic scars can affect income inequality and poverty, making it more difficult for countries to achieve their Sustainable Development Goals.”
He explained that to get closer to these, spending on skills, education, transportation, offices and machinery needs to be significantly increased.
The IMF said countries must reverse the expected decline in tax revenues following the pandemic in order to raise resources.
“This can be achieved through a well-designed menu of VAT and property tax, progressive income, corporate and capital tax, and expanding the foundation of corporate and personal income tax,” he said.
The UK is currently in debt of £ 2 trillion after spending a year in a pandemic.
The IMF’s fiscal monitor has predicted that UK net debt will steadily rise as a percentage of its economy from this year’s forecast level of 97.2% to 99.9% in 2026.
Higher taxes required to tackle the climate crisis warn the IMF
Source link Higher taxes required to tackle the climate crisis warn the IMF