IMF Launches Consultative Process on Financial Sector Tax

At their Summit held in September, the Group of Twenty (G-20) industrial and emerging market countries requested that the IMF analyze policy options "for how the financial sector could make a fair and substantial contribution toward paying for any burdens associated with government interventions" to repair the system.

IMF First Deputy Managing Director John Lipsky, who is heading the IMF group preparing the report, said recently that "an important aspect of our work as we move forward will be to consult and seek the views of a broad set of observers, who will bring varied perspectives and valuable insights to the process."

Broad consultation

The IMF plans a number of steps to ensure a comprehensive consultation process is put in place. The process will involve IMF staff interaction with tax experts, academics, labor unions, and civil society. In addition, IMF Managing Director Dominique Strauss-Kahn and Mr. Lipsky will hold meetings with senior officials of civil society organizations (CSOs).

In a December 3rd letter to 91 CSOs that had written to him on the issue, Mr. Strauss-Kahn said, "I am committed to providing an appropriate...