Social Impact of a Tax Reform: The Case of Ethiopia
AbstractThis paper provides an assessment of the poverty and social impact of replacing Ethiopia's sales tax with a value-added tax (VAT). The results indicate that this reform has not had a major adverse effect on the poorest 40 percent of the population. The VAT is progressive in its incidence, and the higher revenues brought about by the VAT can provide additional funds for poverty-reducing spending, including primary education. At the same time, there is significant scope for making education spending more pro-poor by increasing the access of low-income households to schools.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by International Monetary Fund in its series IMF Working Papers with number 03/232.
Date of creation: 01 Nov 2003
Date of revision:
Contact details of provider:
Postal: International Monetary Fund, Washington, DC USA
Phone: (202) 623-7000
Fax: (202) 623-4661
Web page: http://www.imf.org/external/pubind.htm
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Davidson, R. & Duclos, J.Y., 1995.
"Statistical Inference for the Measurement of the Incidence of Taxes and Transfers,"
95a30, Universite Aix-Marseille III.
- Russell Davidson & Jean-Yves Duclos, 1997. "Statistical Inference for the Measurement of the Incidence of Taxes and Transfers," Econometrica, Econometric Society, vol. 65(6), pages 1453-1466, November.
- Davidson, R. & Duclos, J.Y., 1995. "Statistical Inference for the Measurement of the Incidence of Taxes and Transfers," Papers 9521, Laval - Recherche en Politique Economique.
- DAVIDSON, Russell & DUCLOS, Jean-Yves, 1995. "Statistical Inference for the Measurement of the Incidences of Taxes and Transfers," Cahiers de recherche 9521, Université Laval - Département d'économique.
- Yitzhaki, Shlomo, 1983. "On an Extension of the Gini Inequality Index," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 24(3), pages 617-28, October.
- Devarajan, Shantayanan & Hossain, Shaikh I., 1995. "The combined incidence of taxes and public expenditures in the Philippines," Policy Research Working Paper Series 1543, The World Bank.
- International Monetary Fund, 2002. "Ethiopia: Second Review Under the Three-Year Arrangement Under the Poverty Reduction and Growth Facility, Requests for Augmentation of Access and for Waiver of Performance Criterion, and Second Annual," IMF Staff Country Reports 02/68, International Monetary Fund.
- Shahabuddin Mosherraf Hossain, 2003. "Poverty and Social Impact Analysis-A Suggested Framework," IMF Working Papers 03/195, International Monetary Fund.
- Ke-young Chu & Hamid Reza Davoodi & Sanjeev Gupta, 2000. "Income Distribution and Tax and Government Social Spending Policies in Developing Countries," IMF Working Papers 00/62, International Monetary Fund.
- Thurlow, James & Wobst, Peter, 2003. "Poverty-focused social accounting matrices for Tanzania," TMD discussion papers 112, International Food Policy Research Institute (IFPRI).
- Chu, K.-y. & Davoodi, H. & Gupta, S., 2000. "Income Distribution and Tax, and Government Social Spending Policies in Developing Countries," Research Paper 214, World Institute for Development Economics Research.
- Lanjouw, Peter & Ravallion, Martin, 1998. "Benefit incidence and the timing of program capture," Policy Research Working Paper Series 1956, The World Bank.
- Caroline M. Robb, 2003. "Poverty and Social Impact Analysis - Linking Macroeconomic Policies to Poverty Outcomes: Summary of Early Experiences," IMF Working Papers 03/43, International Monetary Fund.
- David E. Sahn & Stephen D. Younger, 1999. "Dominance Testing of Social Sector Expenditures and Taxes in Africa," IMF Working Papers 99/172, International Monetary Fund.
- Gabriela Inchauste, 2002. "Poverty and Social Impact Analysis in PRGF-Supported Programs," IMF Policy Discussion Papers 02/11, International Monetary Fund.
- Alderman, Harold & del Ninno, Carlo, 1999. "Poverty Issues for Zero Rating VAT in South Africa," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 8(2), pages 182-208, July.
- Hentschel, J. & Lanjouw, P., 1996. "Constructing an Indicator of Consumption for the Analysis of Poverty. Principles and Illustrations with Reference to Ecuador," Papers 127, World Bank - Living Standards Measurement.
- Gbewopo Attila & Gérard Chambas & Jean-Louis Combes, 2011.
"Aide publique au développement et transition fiscale,"
- Jean-Louis COMBES & Gérard CHAMBAS & Gbewopo ATTILA, 2009. "Aide publique au développement et transition fiscale," Working Papers 200901, CERDI.
- Oya Pinar Ardic & Burcay Erus & Gurcan Soydan, 2010.
"An evaluation of indirect taxes in Turkey,"
AccessEcon, vol. 30(4), pages 2787-2801.
- Christian E. Weller & Manita Rao, 2008. "Can Progressive Taxation Contribute to Economic Development?," Working Papers wp176, Political Economy Research Institute, University of Massachusetts at Amherst.
- Ben Lockwood & Michael Keen, 2007.
"The Value-Added Tax: Its Causes and Consequences,"
IMF Working Papers
07/183, International Monetary Fund.
- Keen, Michael & Lockwood, Ben, 2007. "The Value Added Tax : Its Causes and Consequences," The Warwick Economics Research Paper Series (TWERPS) 801, University of Warwick, Department of Economics.
- Michael Keen & Ben Lockwood, 2007. "The Value Added Tax: Its Causes and Consequences," Economics Working Papers ECO2007/09, European University Institute.
- Raghbendra Jha & T. Palanivel, 2007.
"Resource Augmentation for Meeting the Millennium Development Goals in the Asia Pacific Region,"
Departmental Working Papers
2007-02, The Australian National University, Arndt-Corden Department of Economics.
- Raghbendra Jha & T. Palanivel, 2007. "Resource Augmentation for Meeting the Millennium Development Goals in the Asia Pacific Region," ASARC Working Papers 2007-02, The Australian National University, Australia South Asia Research Centre.
- Ada Jansen & Elizabeth Stoltz & Derek Yu, 2012. "Improving the targeting of zero-rated basic foodstuffs under value added tax (VAT) in South Africa - An exploratory analysis," Working Papers 07/2012, Stellenbosch University, Department of Economics.
- Rodrigo Cubero & Ivanna Vladkova Hollar, 2010. "Equity and Fiscal Policy: The Income Distribution Effects of Taxation and Social Spending in Central America," IMF Working Papers 10/112, International Monetary Fund.
- Bird, Richard M. & Zolt, Eric M., 2005. "The limited role of the personal income tax in developing countries," Journal of Asian Economics, Elsevier, vol. 16(6), pages 928-946, December.
- Michael Keen, 2012. "Taxation and Development - Again," IMF Working Papers 12/220, International Monetary Fund.
- 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.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Jim Beardow) or (Hassan Zaidi).
If references are entirely missing, you can add them using this form.