Washington, April 24: The International Monetary Fund’s (IMF) proposal to establish a global tax on banks, to reduce the likelihood of future crises, suffered a set-back as the meeting of the finance ministers of G-20 countries could not agree on it.
“There was not agreement on a global bank tax,” Canadian Finance Minister Jim Flaherty told reporters after the meetings.
“Some countries are in favor of that. Some countries quite clearly are not. It depends whether a country has had to use taxpayers’ dollars to bail out banks, for the most part,” Flaherty said.
In its proposal, the IMF had argued that its proposal to impose broad taxes on the financial industry would reduce the likelihood of a future crisis.
“Our belief is that the tax system can help to reduce the likelihood of future crises along with regulation, of course.
–PTI