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IMF: Latin America's rich should pay more taxes

The head of the International Monetary Fund for Latin America, Alejandro Werner, urged governments to make the rich pay "much more" in taxes, noting that the world's most unequal region would not develop if it did not meet the requirements of a fairer economic system.

Werns added that the recent social turmoil in Latin America confirmed the need for a more equitable distribution of funds, according to the Spanish newspaper "Cronista".

The International Monetary Fund previously asked that the world's high-income earners, who have thrived on the pandemic, pay more taxes on a temporary basis to help those most affected. Latin America has suffered more than any other region, as the coronavirus has exacerbated chronic problems associated with low growth, high inequality and poverty.

Pointing to underutilized property taxes as a good starting point for Latin America, Werner said, "You have to have a much more progressive tax system where the higher segments of the population pay much more and then you have to have an economic system where economic competition is much stronger than it is." him today."

"Latin America cannot be the most unequal region in the world and then jump to the next stage of economic development," he added.

The spillover effects of US stimulus, strong growth in China and higher global commodity prices helped the region recover faster than expected from a 7% drop in GDP last year, and the International Monetary Fund, along with private sector economists, has become , more optimistic about its prospects.

Werner said the IMF's current forecast for 4.6% growth in Latin America this year is likely to be revised upwards, in part because economies have managed to keep activity higher than expected, despite ongoing coronavirus infections.

“The relationship between economic activity and the infection rate is much weaker now than it was in [the second quarter] last year,” he said.