Analyzing the Potential Impact of Indirect Tax Reforms on Poverty with Limited Data: Niger
Many countries in sub-Saharan Africa are confronted with the need to raise tax revenues in order to be able to provide a range of services to their populations. Yet taxes and other government revenues as a proportion of GDP are lowest in the poorest countries that need to expand their services the most. In addition, because of high level of informality in their economies, very-low-income countries obtain a large share of tax revenues through consumption taxes which tend to be more regressive than taxes on incomes levied in richer countries. Such a situation poses a difficult dilemma. Very-low-income countries are trying to increase their tax revenues to provide better services to their populations in need, but at the same time a substantial part of the burden of increased taxation may fall on the poor. Furthermore, because the poor in very-low-income countries are often extremely poor, even small increases in the price of the goods they consume related to an increase in tax rates on those goods may have important negative implications for the households’ ability to meet their basic needs. This implies that government must be especially careful when raising taxes in order to provide social services. The type of household survey-based analysis that can be conducted to inform governments in this area is illustrated in this paper with a case study on Niger.
|Date of creation:||Jan 2008|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: https://mpra.ub.uni-muenchen.de
More information through EDIRC
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.:
- Ajwad, Mohamed Ihsan & Wodon, Quentin, 2007. "Do local Governments maximize access rates to public services across areas?: A test based on marginal benefit incidence analysis," The Quarterly Review of Economics and Finance, Elsevier, vol. 47(2), pages 242-260, May.
- Coady, David P. & Grosh, Margaret & Hoddinott, John, 2002.
"Targeting outcomes redux,"
144, International Food Policy Research Institute (IFPRI).
- Yitzhaki, Shlomo & Slemrod, Joel, 1991.
"Welfare Dominance: An Application to Commodity Taxation,"
American Economic Review,
American Economic Association, vol. 81(3), pages 480-96, June.
- Shlomo Yitzhaki & Joel Slemrod, 1987. "Welfare Dominance: An Application to Commodity Taxation," NBER Working Papers 2451, National Bureau of Economic Research, Inc.
- Yitzhaki, Shlomo & Lewis, Jeffrey D, 1996. "Guidelines on Searching for a Dalton-Improving Tax Reform: An Illustration with Data from Indonesia," World Bank Economic Review, World Bank Group, vol. 10(3), pages 541-62, September.
- Lambert, Peter J, 1993. " Evaluating Impact Effects of Tax Reforms," Journal of Economic Surveys, Wiley Blackwell, vol. 7(3), pages 205-42, September.
- Makdissi, Paul & Wodon, Quentin, 2002. "Consumption dominance curves: testing for the impact of indirect tax reforms on poverty," Economics Letters, Elsevier, vol. 75(2), pages 227-235, April.
- Kathy Hayes & Peter Lambert & Daniel Slottje, . "Evaluating Impact Effects of Tax Reforms," Discussion Papers 93/10, Department of Economics, University of York.
- Yitzhaki, Shlomo & Thirsk, Wayne, 1990. "Welfare dominance and the design of excise taxation in the Cote d'ivoire," Journal of Development Economics, Elsevier, vol. 33(1), pages 1-18, July.
- Lanjouw, Peter & Ravallion, Martin, 1999. "Benefit Incidence, Public Spending Reforms, and the Timing of Program Capture," World Bank Economic Review, World Bank Group, vol. 13(2), pages 257-73, May.
When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:11074. 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: (Ekkehart Schlicht)
If references are entirely missing, you can add them using this form.