IMF Notes

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2022

September 8, 2022

Policies to Address the Refugee Crisis in Europe Related to Russia’s Invasion of Ukraine

Description: Refugees from Ukraine face multiple vulnerabilities, with many requiring humanitarian assistance to meet basic needs. In response to Russia’s invasion of Ukraine, host countries in Europe and beyond have adopted measures to support refugees, including residency rights, free movement across countries, access to labor markets and integration policies, health and education services, housing options, banking services, and social protection systems. Drawing on previous IMF work on the economic challenges of refugees, this note provides an overview of policy responses needed to provide effective support to refugees fleeing Ukraine.

August 30, 2022

Taxing Windfall Profits in the Energy Sector

Description: The surge in fossil fuel prices in 2022 has generated substantial windfall profits in the energy sector. Policymakers in many countries are exploring policies to tax part of these profits. Excess profits can be taxed by tax instruments targeted at economic rents that avoid discouraging investment and limit any impact on further price increases. Many fossil fuel producing countries already have an adequate rent-capturing fiscal instrument in place. Others may consider introducing a permanent tax on windfall profits from fossil fuel extraction but should be more cautious about temporary and possibly poorly designed windfall profit taxes. Given the importance of encouraging decarbonatization of energy generation, it seems counter-intuitive to introduce exceptional tax measures on renewable electricity generation.

June 7, 2022

Fiscal Policy for Mitigating the Social Impact of High Energy and Food Prices

Description: Fiscal policy has a crucial role in lessening the impact on the most vulnerable households. Governments must balance by ensuring access to energy and food, normalizing fiscal policy after unprecedented support in 2020, and promoting green transformation.

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