IMF Praises Sudan For Improved Methods Of Tax Collection

by Mary Swire, Tax-News.com, Hong Kong

08 January 2009

The International Monetary Fund (IMF) has given praise to Sudan for its improved methods of tax collection throughout 2008, it has been revealed.

IMF officials announced their findings during the fund's annual economic review of the country, revealing an 8.5% increase to Sudan's gross domestic product.

In their review, which was published on January 7, IMF directors welcomed the improved fiscal performance in 2008, commending the authorities for the steps taken to widen the tax base, improve tax administration, and strengthen public financial management.

The directors went on to encourage the Sudanese authorities to continue to build on the progress made with fiscal reforms, which are crucial to improve the non-oil fiscal balance. They warned that existing VAT exemptions should be streamlined, the personal income tax reformed, and key tax administration reforms expedited.

Directors also supported the re-orientation of spending toward the social sectors and infrastructure, and underlined the need to maintain a cautious fiscal stance in 2009 in the face of expenditure pressures and declining oil revenue.

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