The World Bank and the IMF announced on 10 July 2015 that they are launching an initiative to support developing countries in strengthening their tax administrations. Research has suggested that there is potential for lower income countries to increase their ratio of tax to GDP by between 2% and 4% of GDP while maintaining economic growth and fairness in their tax systems. The additional revenue raised by a stronger tax administration would help to promote economic development.

The announcement was made ahead of the conference on Financing for Development held in Addis Ababa on 13 to 16 July in which heads of state, multilateral institutions, non-governmental organizations and private sector representatives discussed financing to meet sustainable development goals.

The World Bank/IMF initiative aims to increase the dialogue with developing countries on international tax issues and increase their contribution to the debate on tax rules and international cooperation. The initiative also aims to develop diagnostic tools that will help the member countries evaluate and strengthen tax policies. The two organizations are already conducting numerous programs in developing countries in relation to tax and tax-related technical assistance.

The initiative will result in stronger collaboration between the institutions and developing countries and identification of important international tax policy concerns of developing countries. The aim is to arrive at potential solutions to these issues at the level of national policy in developing countries and through the continuing international dialogue.