An IMF document provoked ire in Zambia by asking the government to remove value added tax exemptions on a range of goods, including mosquito nets used to fight malaria. The non-public document, Zambia – Key Issues of Tax Reform, also called for taxes on food items, agricultural goods and water and sewage services. The former and current presidents quickly dismissed the proposals and opposition parties organised protests against the moves. The IMF’s new resident representative, Birgir Anarson, distanced himself from the specifics of the plan soon after arriving in country, maintaining that the government needed to increase taxes but that “it is up to the government to decide how they raise the revenue.” The IMF mission that visited Zambia in November indicated in its mission concluding statement that “tax revenue should be boosted so as to contain government’s domestic borrowing while providing scope for increased spending on infrastructure and social programs to meet the national development goals.”
16 February 2007
Review maintains inadequate and inconsistent approach to economic and gender inequality, as well as climate change.
Donate to the Bretton Woods Project
The Bretton Woods Project is a UK-based NGO that challenges the World Bank and IMF and promotes alternative approaches. We serve as an information provider, watchdog, networker and advocate. Our flagship publications are the Bretton Woods Observer, a quarterly critical review of developments at the World Bank and IMF, the Dispatch, a biannual analysis of the World Bank and IMF Spring and Annual Meetings, and the NewsLens, a bi-weekly roundup of key news and critical viewpoints published about the World Bank and IMF.
The Bretton Woods Project is an ActionAid hosted project (UK registered charity no. 274467).