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Djibouti: Subsidies, Tax Exemptions and Welfare

In: The Quest for Subsidy Reforms in the Middle East and North Africa Region

Author

Listed:
  • Stefanie Brodmann

    (World Bank)

  • Harold Coulombe

    (World Bank)

Abstract

Universal tax exemptions were introduced in Djibouti in response to the food crisis and to shield the population from price shocks on essential food products. Djibouti depends massively on imports to meet its food needs and a large fraction of the population faces food insecurity. This paper examines the distributional effects of those untargeted subsidies in both food and fuel products. And then looks at the different reform options focusing on better targeted policies aiming at reducing poverty. Savings from a possible tax reform on fuel products and other funding resources could be rechanneled toward the poor and vulnerable. We look at the creation of a social registry of poor and vulnerable households, which will be used to target the poor and serve as a single platform used by all social assistance programs.

Suggested Citation

  • Stefanie Brodmann & Harold Coulombe, 2017. "Djibouti: Subsidies, Tax Exemptions and Welfare," Natural Resource Management and Policy, in: Paolo Verme & Abdlekrim Araar (ed.), The Quest for Subsidy Reforms in the Middle East and North Africa Region, chapter 0, pages 229-257, Springer.
    • Handle: RePEc:spr:nrmchp:978-3-319-52926-4_9
    DOI: 10.1007/978-3-319-52926-4_9
    as

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