IDEAS home Printed from https://ideas.repec.org/a/bla/annpce/v93y2022i1p103-128.html
   My bibliography  Save this article

The impact of indirect tax on income distribution and poverty in Tanzania

Author

Listed:
  • Asiya Maskaeva
  • Zanda Bochkaeva
  • Joel Mmasa
  • Mgeni Msafiri

Abstract

This paper analyzes the impacts of indirect tax benefits policy reforms on income distribution and poverty in Tanzania by applying a standard static microsimulation model TAZMOD v1.8. The simulations model two indirect tax reforms involving changes to the excise duty and value‐added tax rates on alcoholic beverages and tobacco products, and changes to employers’ and employees’ contributions to the National Health Insurance Fund. The results of the first reform find a positive effect on government tax revenue and a neutral effect on income distribution and poverty. The results of the second reform find a positive effect on household income distribution and consumption. The findings show that, despite increasing unequal income distribution, poverty indicators fell.

Suggested Citation

  • Asiya Maskaeva & Zanda Bochkaeva & Joel Mmasa & Mgeni Msafiri, 2022. "The impact of indirect tax on income distribution and poverty in Tanzania," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 93(1), pages 103-128, March.
    • Handle: RePEc:bla:annpce:v:93:y:2022:i:1:p:103-128
    DOI: 10.1111/apce.12319
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/apce.12319
    Download Restriction: no
    File URL: https://libkey.io/10.1111/apce.12319?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Bird,Richard M., 2015. "Tobacco and alcohol excise taxes for improving public health and revenue outcomes : marrying sin and virtue ?," Policy Research Working Paper Series 7500, The World Bank.
    2. Pia Rattenhuber & Maria Jouste, 2018. "A role for universal pension? Simulating universal pensions in Ecuador, Ghana, Tanzania, and South Africa," WIDER Working Paper Series 023, World Institute for Development Economic Research (UNU-WIDER).
    3. Dominic Haazen, 2012. "Making Health Financing Work for Poor People in Tanzania," World Bank Publications - Books, The World Bank Group, number 2240, December.
    4. Kidane, Asmerom & Hepelwa, Aloyce & Mdadila, Kenneth & Ngeh, Ernest & Hu, Teh Wei, 2017. "The demand for cigarette in Tanzania: A temporal approach," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 45, pages 136-143.
    5. Pia Rattenhuber & Maria Jouste, 2018. "A role for universal pension? : Simulating universal pensions in Ecuador, Ghana, Tanzania, and South Africa," WIDER Working Paper Series wp-2018-23, World Institute for Development Economic Research (UNU-WIDER).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Asiya Maskaeva & Zanda Bochkaeva & Joel Mmasa & Mgeni Msafiri & Eric Iramba, 2019. "Microsimulation analysis of the impact of indirect tax benefits on income distribution and poverty alleviation in Tanzania: An application of TAZMOD," WIDER Working Paper Series wp-2019-16, World Institute for Development Economic Research (UNU-WIDER).
    2. Cruz-Martinez, Gibran, 2021. "Universal Social Pensions Are Unaffordable … Not! Testing the Unaffordability Hypothesis in Latin America and the Caribbean," SocArXiv ne9rw, Center for Open Science.
    3. Sijbren Cnossen, 2020. "Excise Taxation for Domestic Resource Mobilization," CESifo Working Paper Series 8442, CESifo.
    4. Kai Kaiser & Caryn Bredenkamp & Roberto Iglesias, 2016. "Sin Tax Reform in the Philippines," World Bank Publications - Books, The World Bank Group, number 24617, December.
    5. Anne Maryse Pierre-Louis & Katherina Ferl & Christina Dinh Wadhwani & Neesha Harnam & Montserrat Meiro-Lorenzo, 2014. "Setting the Stage to Address the Dual Challenge of MDGs and NCDs," Health, Nutrition and Population (HNP) Discussion Paper Series 100278, The World Bank.
    6. Richard M. Bird, 2018. "Are global taxes feasible?," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 25(5), pages 1372-1400, October.
    7. Tanja Laković & Ana Mugoša & Mirjana Čizmović & Gordana Radojević, 2019. "Impact of Taxation Policy on Household Spirit Consumption and Public-Finance Sustainability," Sustainability, MDPI, vol. 11(20), pages 1-15, October.
    8. Mailu, S.K. & Mulinge, W., 2016. "Excise tax changes and their impact on Gadam sorghum demand in Kenya," 2016 Fifth International Conference, September 23-26, 2016, Addis Ababa, Ethiopia 246959, African Association of Agricultural Economists (AAAE).
    9. Magambo, Isaiah & Dikgang, Johane & Gelo, Dambala & Tregenna, Fiona, 2021. "Gold-Mining Pollution Exposure, Health Effects and Private Healthcare Expenditure in Tanzania," MPRA Paper 108800, University Library of Munich, Germany.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:annpce:v:93:y:2022:i:1:p:103-128. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=1370-4788 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.