According to IMF, getting energy prices right would be beneficial to the economy, environment, and public health.The International Monetary Fund (IMF) has called on governments around the world to take advantage of low oil prices and reform energy taxes to support sustainable economic growth.
“Getting energy prices right would be beneficial to the economy, environment, and public health,”
says a new IMF report.
“It would assist governments with their fiscal consolidation efforts or to make further investment in critical areas such as education and health. In advanced economies, taxes on labor could be cut and paid for with higher energy taxes.”
IMF noted that more than 20 countries have recently taken steps to cut energy subsidies, including Angola, Cote d’Ivoire, Egypt, India, Indonesia, and Malaysia.
Previously the Fund in particular urged countries to bring tax rates on energy products into line with their environmental impact and to remove support for diesel and petrol compared with more environmentally friendly alternatives.
Credit: Tax News