Benefit Incidence of Fiscal Measures to Deal with the Impact on Households of the Economic Crisis in Liberia: Comparing Import and Income Taxes
AbstractTo help households cope with the recent economic crisis, and especially the increase in food prices, the government of Liberia announced a number of fiscal measures. A first measure was to implement a temporary exoneration of import duties on food products, and especially imported rice. A second measure announced by the President in her January 2009 State of the Union address was to reduce the personal income tax top rate from 35 percent to 25 percent together with an exclusion from paying income tax for all ndividuals earning less than L$54,000. This chapter provides an analysis of the consumption and income data from the nationally representative 2007 CWIQ (Core Welfare Indicator Questionnaire) survey in order to compare the likely benefit incidence of both measures. While none of the measures is well targeted to the poor, the first measure is likely to benefit the poor substantially more than the second.
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 University Library of Munich, Germany in its series MPRA Paper with number 38553.
Date of creation: Apr 2012
Date of revision:
Find related papers by JEL classification:
- I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
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.:
- Tsimpo, Clarence & Wodon, Quentin, 2008. "Rice prices and poverty in Liberia," Policy Research Working Paper Series 4742, The World Bank.
- Quentin Wodon, 2012. "Poverty and the Policy Response to the Economic Crisis in Liberia," World Bank Publications, The World Bank, number 13080, March.
- Backiny-Yetna, Prospere & Wodon, Quentin & Zampaglione, Giuseppe, 2012. "Impact of Labor-Intensive Public Works in Liberia: Results from a Light Evaluation Survey," MPRA Paper 38556, University Library of Munich, Germany.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ekkehart Schlicht).
If references are entirely missing, you can add them using this form.