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Social Impact of a Tax Reform: The Case of Ethiopia Author info | Abstract | Publisher info | Download info | Related research | Statistics Stanley Sang-Wook Cho
Sònia Muñoz
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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.
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Paper provided by International Monetary Fund in its series IMF Working Papers with number
03/232.
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Length: 38 pages
Date of creation: 09 Dec 2003Date of revision:
Handle: RePEc:imf:imfwpa:03/232Contact 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
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For technical questions regarding this item, or to correct its listing, contact: (Christopher F. Baum).
Keywords: Poverty ; Ethiopia ; Tax reforms ; Value added tax ; Social policy ; Other versions of this item:
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.: Alderman, Harold & del Ninno, Carlo, 1999.
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[Downloadable!]
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references Cited by : (explanations , 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.)
Ajitava Raychaudhuri & Sudip Kumar Sinha & Poulomi Roy, 2007.
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Raghbendra Jha & T. Palanivel, 2007.
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2007-02, Australian National University, Australia South Asia Research Centre.
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"The Value-Added Tax: Its Causes and Consequences ,"
IMF Working Papers
07/183, International Monetary Fund.
[Downloadable!]
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