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IMF- Increase in VAT Rates
November, 16th 2010

The International Monetary Fund has recommended that VAT rates be increased in order to contain fiscal deficits and ensure a sustainable level of public debt.

IMF team leader Jonathan Dunn said the current level of central government debt which stands at about 73 percent of GDP constrains the government's ability to cushion the economy against future shocks.

Dunn said there are a number of immediate steps that the government can take.

Dunn said the growth of tourism and positive developments in some primary industries will likely raise growth.

He added GDP growth of around 1 percent is likely in 2011, driven by the ongoing rebound in tourism and agriculture.

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