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Poverty-decreasing indirect tax reforms: Evidence from Tunisia

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  • Sami Bibi

    ()

  • Jean-Yves Duclos

    ()

Abstract

This paper proposes a methodology to identify revenue-neutral directions for poverty-alleviating tax reforms. The search for such poverty-reducing tax reforms is done “robustly” over broad classes of poverty measures and poverty lines. The methodology, which is illustrated using data from Tunisia, is of significant policy interest given the widespread use of commodity subsidization and taxation in developing and developed countries alike. The results suggest that Tunisian poverty could be decreased robustly by following reform directions that are often at odds with frequently-heard views. They also highlight the importance of stating clearly under which set of ethical criteria the desirability of potential indirect tax reforms is assessed. Copyright Springer Science + Business Media, LLC 2007

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Bibliographic Info

Article provided by Springer in its journal International Tax and Public Finance.

Volume (Year): 14 (2007)
Issue (Month): 2 (April)
Pages: 165-190

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Handle: RePEc:kap:itaxpf:v:14:y:2007:i:2:p:165-190

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Web page: http://www.springerlink.com/link.asp?id=102915

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Keywords: Poverty alleviation; Indirect taxation; Targeting; Tunisia;

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References

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Citations

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Cited by:
  1. Raghbendra Jha, 2007. "Fiscal Policy in Developing Countries: A Synoptic View," ASARC Working Papers 2007-01, The Australian National University, Australia South Asia Research Centre.
  2. Sami Bibi, 2005. "When is Economic Growth Pro-Poor? Evidence from Tunisia," Cahiers de recherche 0522, CIRPEE.
  3. B. Essama-Nssah, 2007. "A poverty-focused evaluation of commodity tax options," Journal of International Development, John Wiley & Sons, Ltd., vol. 19(8), pages 1114-1130.
  4. Khaldi, Raoudha & Dhraief, Mohamed Zied & Haddad, Samia & Rached, Zouhair & Padilla, Martine, 2007. "Impact of the food safety policies on the reduction of poverty in Tunisian rural areas," 106th Seminar, October 25-27, 2007, Montpellier, France 7928, European Association of Agricultural Economists.
  5. Essama-Nssah, B., 2008. "Assessing the redistributive effect of fiscal policy," Policy Research Working Paper Series 4592, The World Bank.
  6. Ajitava Raychaudhuri & Sudip Kumar Sinha & Poulomi Roy, 2007. "Is the Value Added Tax Reform in India Poverty-Improving? An Analysis of Data from Two Major States," Working Papers PMMA 2007-18, PEP-PMMA.
  7. Sami Bibi, 2006. "Growth with Equity is Better for the Poor," Cahiers de recherche 0640, CIRPEE.
  8. Sami Bibi & Rim Chatti, 2006. "Trade Liberalization and the Dynamics of Poverty in Tunisia: a Layered CGE Microsimulation Analysis/Libéralisation des échanges et dynamique de la pauvreté en Tunisie: Analyse avec une micro-simula," Working Papers MPIA 2006-07, PEP-MPIA.

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