Shift Away From Informal Economy Would Boost Tax Revenue: IMF

July 23, 2021, 4:36 PM

Businesses and workers should shift away from the “informal economy” in which billions of people now work to more formal business and employment arrangements, the head of the IMF said Friday.

Moving to more formal arrangements would increase tax revenue for governments and better protect workers, said Kristalina Georgieva, the International Monetary Fund’s managing director.

She said governments should streamline their tax systems to make it easier for workers and small businesses to make the move.

About 60% of the global adult workforce works in the informal economy, according to the IMF. That includes workers ranging from street vendors ...

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