Lagarde: taxes to cope with the decline of oil in the Gulf


 

02/24/2016 18:28

 

BAGHDAD / obelisk said Executive Director of the International Monetary Fund, Christine Lagarde, on Wednesday, it must be on the Gulf Cooperation Council (GCC), look for more financing means, to increase fiscal revenue, to cope with declines of crude oil.

She said Lagarde at a press conference in Dubai, with the end of her visit to the UAE, the Gulf’s oil-rich, has lost nearly 70%, from fiscal revenues, due to lower raw, so it must have a secure alternative sources of financing, led by taxes.

It fell crude oil prices, increased by 70% since mid-2014, down from $ 120 a barrel to less than $ 30 in the month of January, due to oversupply and limited demand.

She Lagarde, who announced her candidacy for a second term for the management of the fund for five years to come, it is necessary to secure sources to spend on essential public services, and especially education and health.

And called for the need for the continuation of the Gulf States, in the process of tax reform, with the need to focus more on corporate income taxes, or the introduction of income tax on individuals, which would provide a good way to secure the necessary financing needs.

The oil markets around the world, from a glut in supply, estimated at 1.5 million barrels per day, compared to the limited demand, due to the decline in the morale of the advanced economies and emerging together, around the world.

She Lagarde, that the imposition of VAT are expected to apply by the Gulf states, will be at low levels, and will not contribute to revenue support only about 2% of GDP.

And it agreed to the six Gulf Cooperation Council countries (Saudi Arabia, and the UAE, Qatar, Bahrain, Kuwait, Oman) last March, to continue to work towards the introduction of a tax of added value, across the region, in a sign of the trend towards enhancing revenue, after a significant decline in oil prices.

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