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Poverty-decreasing indirect tax reforms: Evidence from Tunisia

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  • Sami Bibi

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  • Jean-Yves Duclos

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Abstract

This paper proposes a methodology to identify revenue-neutral directions for poverty-alleviating tax reforms. The search for such poverty-reducing tax reforms is done “robustly” over broad classes of poverty measures and poverty lines. The methodology, which is illustrated using data from Tunisia, is of significant policy interest given the widespread use of commodity subsidization and taxation in developing and developed countries alike. The results suggest that Tunisian poverty could be decreased robustly by following reform directions that are often at odds with frequently-heard views. They also highlight the importance of stating clearly under which set of ethical criteria the desirability of potential indirect tax reforms is assessed. Copyright Springer Science + Business Media, LLC 2007

Suggested Citation

  • Sami Bibi & Jean-Yves Duclos, 2007. "Poverty-decreasing indirect tax reforms: Evidence from Tunisia," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 14(2), pages 165-190, April.
    • Handle: RePEc:kap:itaxpf:v:14:y:2007:i:2:p:165-190
    DOI: 10.1007/s10797-006-8879-x
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    Citations

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    Cited by:

    1. Sami Bibi, 2006. "Growth with Equity is Better for the Poor," Cahiers de recherche 0640, CIRPEE.
    2. Raghbendra Jha, 2007. "Fiscal Policy in Developing Countries: A Synoptic View," ASARC Working Papers 2007-01, The Australian National University, Australia South Asia Research Centre.
    3. Jorge N. Valero-Gil & Magali Valero, 2008. "The effects of rising food prices on poverty in Mexico," Agricultural Economics, International Association of Agricultural Economists, vol. 39(s1), pages 485-496, November.
    4. Khaldi, Raoudha & Dhraief, Mohamed Zied & Haddad, Samia & Rached, Zouhair & Padilla, Martine, 2007. "Impact of the food safety policies on the reduction of poverty in Tunisian rural areas," 106th Seminar, October 25-27, 2007, Montpellier, France 7928, European Association of Agricultural Economists.
    5. Essama-Nssah, B., 2008. "Assessing the redistributive effect of fiscal policy," Policy Research Working Paper Series 4592, The World Bank.
    6. Sami Bibi & John Cockburn & Massa Coulibaly & Luca Tiberti, 2009. "The Impact of the Increase in Food Prices on Child Poverty and the Policy Response in Mali," Papers inwopa09/66, Innocenti Working Papers.
    7. Sami Bibi & Massa Coulibaly & John Cockburn & Luca Tiberti, 2009. "L'impact de la hausse des prix des produits alimentaires sur la pauvreté des enfants et les reponses politiques au Mali," Papers inwopa09/60, Innocenti Working Papers.
    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. Sami Bibi, 2005. "When is Economic Growth Pro-Poor? Evidence from Tunisia," Cahiers de recherche 0522, CIRPEE.
    10. B. Essama-Nssah, 2007. "A poverty-focused evaluation of commodity tax options," Journal of International Development, John Wiley & Sons, Ltd., vol. 19(8), pages 1114-1130.
    11. Sami Bibi & Rim Chatti, 2006. "Trade Liberalization and the Dynamics of Poverty in Tunisia: a Layered CGE Microsimulation Analysis/Libéralisation des échanges et dynamique de la pauvreté en Tunisie: Analyse avec une micro-simulatio," Working Papers MPIA 2006-07, PEP-MPIA.

    More about this item

    Keywords

    Poverty alleviation; Indirect taxation; Targeting; Tunisia;

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs

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