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Impact of excise tax on the South African economy: A dynamic CGE approach

Author

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  • Erero Jean Luc

    (Operational Research (OR), Tax, Customs and Excise Institute (TCEI), South African Revenue Service (SARS))

Abstract

Aim/purpose – This paper analyses the impact of excise tax on the South African economy by means of a Dynamic Computable General Equilibrium (CGE) model. We utilised a policy simulation to evaluate the effects of an excise tax, with the results indicating that the rise in excise tax should not impinge on lower revenue households, as long as the greater government revenue flows to those households.

Suggested Citation

  • Erero Jean Luc, 2019. "Impact of excise tax on the South African economy: A dynamic CGE approach," Journal of Economics and Management, Sciendo, vol. 37(3), pages 23-44, September.
    • Handle: RePEc:vrs:jecman:v:37:y:2019:i:3:p:23-44:n:8
    DOI: 10.22367/jem.2019.37.02
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    References listed on IDEAS

    as
    1. Theresa Alton & Channing Arndt & Rob Davies & Faaiqa Hartley & Konstantin Makrelov & James Thurlow & Dumebi Ubogu, 2012. "The Economic Implications of Introducing Carbon Taxes in South Africa," WIDER Working Paper Series wp-2012-046, World Institute for Development Economic Research (UNU-WIDER).
    2. Alton, Theresa & Arndt, Channing & Davies, Rob & Hartley, Faaiqa & Makrelov, Konstantin & Thurlow, James & Ubogu, Dumebi, 2012. "The Economic Implications of Introducing Carbon Taxes in South Africa," WIDER Working Paper Series 046, World Institute for Development Economic Research (UNU-WIDER).
    3. repec:unu:wpaper:wp2012-46 is not listed on IDEAS
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    More about this item

    Keywords

    excise tax; Dynamic Computable General Equilibrium model; South Africa;
    All these keywords.

    JEL classification:

    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • H71 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Taxation, Subsidies, and Revenue

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