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Fighting the soaring prices of agricultural food products -VAT versus Trade tariffs exemptions. A case study in Niger

Author

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  • Céline de Quatrebarbes

    (FERDI - Fondation pour les Etudes et Recherches sur le Développement International)

  • Bertrand Laporte

    (CERDI - Centre d'Études et de Recherches sur le Développement International - IRD - Institut de Recherche pour le Développement - CNRS - Centre National de la Recherche Scientifique - UCA - Université Clermont Auvergne)

  • Stéphane Calipel

    (CERDI - Centre d'Études et de Recherches sur le Développement International - IRD - Institut de Recherche pour le Développement - CNRS - Centre National de la Recherche Scientifique - UCA - Université Clermont Auvergne)

Abstract

As happened in West Africa in 2008, in an imported inflation context, it is common for the governments to take short-term tax action to protect the poor: VAT or trade tariffs exemptions. As part of the tax-tariff transition, the comparison between Trade tariffs and VAT has already been the subject of much works. The introduction of VAT, as a tax on final consumption, is supposed to be optimal, due to its economically neutral aspect for production decisions. However, some authors show that in developing countries, a large informal sector affects this result. In this paper, we use a CGE model and a micro-simulation model to compare the effects of VAT and Trade tariffs exemptions to combat rising agricultural food prices.

Suggested Citation

  • Céline de Quatrebarbes & Bertrand Laporte & Stéphane Calipel, 2021. "Fighting the soaring prices of agricultural food products -VAT versus Trade tariffs exemptions. A case study in Niger," Working Papers hal-03164636, HAL.
    • Handle: RePEc:hal:wpaper:hal-03164636
    Note: View the original document on HAL open archive server: https://hal.science/hal-03164636
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    References listed on IDEAS

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    Keywords

    computable general equilibrium model; imperfect competition; indirect taxes; poverty; Niger;
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