IDEAS home Printed from https://ideas.repec.org/a/oup/wbecrv/v13y1999i2p303-31.html
   My bibliography  Save this article

Tax Incidence in Madagascar: An Analysis Using Household Data

Author

Listed:
  • Younger, Stephen D, et al

Abstract

This article discusses tax incidence in Madagascar and asks who pays the taxes that finance government spending. Its main concern is to identify the progressivity of different taxes levied in Madagascar, based on the consumption and income patterns found in the 1994 Enquete Permanente aupres des Menages, a nationally representative survey. The results suggest that most taxes are progressive, meaning that wealthy households pay proportionately more of these taxes relative to their expenditures than do poor households. Two notable exceptions are taxes on kerosene and export duties on vanilla, both of which are regressive. These results are consistent with those of a study of Ghana, the only other comparable research on tax incidence in Africa. That study found taxes on kerosene and cocoa exports to be the most regressive taxes in Ghana. Making firm policy recommendations for tax reform would require an analysis of the economic efficiency and administrative efficacy of different taxes to complement this article's work on their equity implications. Nevertheless, the results suggest that the movement away from trade taxes, especially export duties, and toward broadly based value added or income taxes would be more equitable and more economically efficient. The only legitimate impediment to such reforms in Madagascar is administrative, that is, the government's ability to collect different taxes effectively. Although administrative efficiency may be a problem for value added or income taxes, taxes on petroleum products (except kerosene) are highly progressive and provide a good tax handle. Copyright 1999 by Oxford University Press.

Suggested Citation

  • Younger, Stephen D, et al, 1999. "Tax Incidence in Madagascar: An Analysis Using Household Data," World Bank Economic Review, World Bank Group, vol. 13(2), pages 303-331, May.
  • Handle: RePEc:oup:wbecrv:v:13:y:1999:i:2:p:303-31
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Citations

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


    Cited by:

    1. Martin Rama & Tara Béteille & Yue Li & Pradeep K. Mitra & John Lincoln Newman, 2015. "Addressing Inequality in South Asia," World Bank Publications, The World Bank, number 20395.
    2. Saadia Refaqat, 2005. "Redistributive Impact of GST Tax Reform: Pakistan, 1990-2001," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 44(4), pages 841-862.
    3. James Boyce & Matthew Riddle & Mark D. Brenner, 2005. "A Chinese Sky Trust? Distributional Impacts of Carbon charges and Revenue Recycling in China," Working Papers wp_brenner_riddle_boyce, Political Economy Research Institute, University of Massachusetts at Amherst.
    4. Brenner, Mark & Riddle, Matthew & Boyce, James K., 2007. "A Chinese sky trust?: Distributional impacts of carbon charges and revenue recycling in China," Energy Policy, Elsevier, vol. 35(3), pages 1771-1784, March.
    5. 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.
    6. Farr, Marina & Stoeckl, Natalie & Alam Beg, Rabiul, 2014. "The non-consumptive (tourism) ‘value’ of marine species in the Northern section of the Great Barrier Reef," Marine Policy, Elsevier, vol. 43(C), pages 89-103.
    7. 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.
    8. Richard Kneller & Norman Gemmell, 2002. "Fiscal Policy, Growth and Convergence in Europe," European Economy Group Working Papers 14, European Economy Group.
    9. Levin, Jörgen & Sayeed, Yeasmin, 2014. "Welfare impact of broadening VAT by exempting local food markets: The case of Bangladesh," Working Papers 2014:7, Örebro University, School of Business.
    10. Raghbendra Jha, 2004. "Macroeconomic stabilization and pro-poor budgetary policy in the globalized economy," CAMA Working Papers 2004-08, Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University.
    11. Saadia Refaqat, 2003. "Social Incidence of the General Sales Tax in Pakistan," IMF Working Papers 03/216, International Monetary Fund.
    12. Jorge Martinez-Vazquez, 2001. "The Impact of Budgets on the Poor: Tax and Benefit," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper0110, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
    13. Osei, Robert & Quartey, Peter, 2005. "Tax Reforms in Ghana," WIDER Working Paper Series 066, World Institute for Development Economic Research (UNU-WIDER).
    14. Chakraborty, Lekha & Singh, Yadawendra & Jacob, Jannet Farida, 2012. "Public Expenditure Benefit Incidence on Health: Selective Evidence from India," Working Papers 12/111, National Institute of Public Finance and Policy.
    15. McKay, Andrew, 2002. "Assessing the Impact of Fiscal Policy on Poverty," WIDER Working Paper Series 043, World Institute for Development Economic Research (UNU-WIDER).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:oup:wbecrv:v:13:y:1999:i:2:p:303-31. 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: (Oxford University Press) or (Christopher F. Baum). General contact details of provider: http://edirc.repec.org/data/wrldbus.html .

    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.

    We have no references for this item. You can help adding them by using 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.