The International Monetary Fund (IMF) insists on using taxation to complete the economic recovery after Covid-19, and with the war in Ukraine as a backdrop. A change of discourse that began at the end of 2020 and that contrasts greatly with the postulates prior to the crisis of greater containment.
The organization led by Kristalina Georgieva has proposed that some countries increase taxes on companies that were profitable during Covid. Specifically, she speaks of "temporary increases in corporate income taxes designed to capture excess profits related to the pandemic."
This scenario, however, does not pose it in a general way for everyone. "Where the recovery is underway and private balance sheets are in good shape, mainly in advanced economies that benefited from generous support from governments during the pandemic, fiscal support can be reduced faster (...).
Elsewhere, the recovery may be weaker and targeted fiscal support could help lessen the risks of disruption and scarring. [sobre la economía] within credible medium-term fiscal frameworks. Where targeting fiscal support is difficult and fiscal space is limited, countries may need to consider revenue-enhancing measures to finance various priorities.
Related to all this, the institution advocates "increasing tax compliance and other reforms to modernize commercial taxation" as possible ways to complete economic recovery and fight against the damage caused by the war in Ukraine and its derivatives.
It is not the first time that the IMF has surprised with this speech, since it has repeated it in a similar way at the end of 2020 and also in some 2021 report. “Governments must take measures to improve tax compliance, and evaluate the application of higher taxes for the wealthiest groups and the most profitable companies," he said in October 2020.
Beyond this, the report, which deals with private debt, stresses that "current levels of private leverage may exert some drag on future GDP growth." Thus, said indebtedness, which has skyrocketed in the pandemic, suggests that it would cause »a cumulative slowdown of 0.9% over three years for advanced economies and a cumulative slowdown of 1.3 percent for emerging markets«.
"However, the post-pandemic drag on growth could be much greater in countries where indebtedness is more concentrated among financially constrained households and vulnerable businesses, the insolvency regime is inefficient, and fiscal space is limited," among other factors, says the institution.