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Indirect taxes - the fiscal solution for 2009 and beyond? Back  
Global economies are really suffering from the current financial and economic crisis. As a result, most governments find themselves caught in the middle of a un-precedented financial squeeze. Tax revenues are falling at the very time that governments are being forced to commit additional funding to support their banks and other key industries. It is clear that the figures just won’t add up for many governments and that the option of increasing levels of government borrowing has its limits. For many economies, increasing direct taxes on corporate profits or labour would be counter-productive in the current environment.

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