Advanced Search
MyIDEAS: Login

Social Impact of a Tax Reform

Contents:

Author Info

  • Sònia Muñoz
  • Stanley Sang-Wook Cho

Abstract

This 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 Info

If 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.
File URL: http://www.imf.org/external/pubs/cat/longres.aspx?sk=17018
Download Restriction: no

Bibliographic Info

Paper provided by International Monetary Fund in its series IMF Working Papers with number 03/232.

as in new window
Length: 39
Date of creation: 01 Nov 2003
Date of revision:
Handle: RePEc:imf:imfwpa:03/232

Contact details of provider:
Postal: International Monetary Fund, Washington, DC USA
Phone: (202) 623-7000
Fax: (202) 623-4661
Email:
Web page: http://www.imf.org/external/pubind.htm
More information through EDIRC

Order Information:
Web: http://www.imf.org/external/pubs/pubs/ord_info.htm

Related research

Keywords: Poverty; Value added tax; Tax reforms; vat; expenditure; expenditures; public expenditure; total expenditure; poverty-reducing expenditure; health expenditure; expenditure survey; press; internet; expenditure items; public spending; expenditure policies; capital expenditure; health expenditures; expenditure policy; telecommunications; tax expenditure; fiscal policy; expenditure incidence; expenditure groups; films; photography; categories of expenditures; public expenditures; cinema; expenditure categories; aggregate expenditure; expenditure management; public expenditure policy; composition of expenditures; medium-term expenditure; printing; distribution of expenditures; expenditure level; expenditures in education; tax expenditures; domestic expenditure;

References

References listed on IDEAS
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.:
as in new window
  1. 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.
  2. Caroline M. Robb, 2003. "Poverty and Social Impact Analysis," IMF Working Papers 03/43, International Monetary Fund.
  3. 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.
  4. Lanjouw, Peter & Ravallion, Martin, 1998. "Benefit incidence and the timing of program capture," Policy Research Working Paper Series 1956, The World Bank.
  5. 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.
  6. International Monetary Fund, 2002. "Ethiopia," IMF Staff Country Reports 02/68, International Monetary Fund.
  7. Davidson, R. & Duclos, J.Y., 1995. "Statistical Inference for the Measurement of the Incidence of Taxes and Transfers," G.R.E.Q.A.M. 95a30, Universite Aix-Marseille III.
  8. 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.
  9. 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.
  10. Shahabuddin Mosherraf Hossain, 2003. "Poverty and Social Impact Analysis," IMF Working Papers 03/195, International Monetary Fund.
  11. Gabriela Inchauste, 2002. "Poverty and Social Impact Analysis in PRGF-Supported Programs," IMF Policy Discussion Papers 02/11, International Monetary Fund.
  12. 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.
  13. 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.
  14. Thurlow, James & Wobst, Peter, 2003. "Poverty-focused social accounting matrices for Tanzania," TMD discussion papers 112, International Food Policy Research Institute (IFPRI).
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. 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.
  2. 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.
  3. Jean-Louis COMBES & Gérard CHAMBAS & Gbewopo ATTILA, 2009. "Aide publique au développement et transition fiscale," Working Papers 200901, CERDI.
  4. Oya Pinar Ardic & Burcay Erus & Gurcan Soydan, 2010. "An Evaluation of Indirect Taxes in Turkey," Working Papers 2010/01, Bogazici University, Department of Economics.
  5. Michael Keen, 2009. "What Do (and Don't) We Know about the Value Added Tax? A Review of Richard M. Bird and Pierre-Pascal Gendron's The VAT in Developing and Transitional Countries," Journal of Economic Literature, American Economic Association, vol. 47(1), pages 159-70, March.
  6. Michael Keen, 2012. "Taxation and Development: Again," IMF Working Papers 12/220, International Monetary Fund.
  7. 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.
  8. 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.
  9. Rodrigo Cubero & Ivanna Vladkova Hollar, 2010. "Equity and Fiscal Policy," IMF Working Papers 10/112, International Monetary Fund.
  10. 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.
  11. Ben Lockwood & Michael Keen, 2007. "The Value-Added Tax," IMF Working Papers 07/183, International Monetary Fund.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:imf:imfwpa:03/232. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Jim Beardow) or (Hassan Zaidi).

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 references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.

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