WASHINGTON - The World Bank (WB) and the International Monetary Fund (IMF) are launching a new initiative to help developing countries strengthen their tax systems, the two international financial organizations have announced.

The announcement came ahead of the Third International Conference on Financing for Development scheduled for Monday-Thursday in Addis Ababa of Ethiopia, at which heads of state and multilateral institutions as well as private sector representatives will discuss how to scale up finances to meet the Sustainable Development Goals (SDGs).

Analysis suggests that many lower-income countries have the potential to increase their tax ratios by at least 2-4 percent of GDP without compromising fairness or growth. Raising additional revenues will allow developing countries to fill financing gaps and promote development.

"A strong revenue base is imperative if developing countries are to be able to finance the spending they need on public services, social support and infrastructure," said IMF Managing Director Christine Lagarde. "But experience shows that with well-targeted external technical support and sufficient political will, it can be done."(Xinhua)