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Evaluating the impact of the 2023-2024 personal income tax reform in Rwanda: An analysis using tax-benefit microsimulation modelling

Author

Listed:
  • Antoine de Mahieu
  • Jesse Lastunen
  • Jeannette Mukangango
  • Theogene Harerimana

Abstract

Establishing an equitable and efficient tax system is essential for reducing poverty, combating inequality, and fostering sustainable economic growth. Rwanda's government has recognized this and implemented significant changes to the personal income tax schedule for 2023 and 2024 as part of broader tax reforms set forth in its Medium-Term Revenue Strategy. This study examines the fiscal and distributional effects of the personal income tax changes, employing a newly-created tax-benefit microsimulation model for Rwanda.

Suggested Citation

  • Antoine de Mahieu & Jesse Lastunen & Jeannette Mukangango & Theogene Harerimana, 2023. "Evaluating the impact of the 2023-2024 personal income tax reform in Rwanda: An analysis using tax-benefit microsimulation modelling," WIDER Working Paper Series wp-2023-73, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:wp-2023-73
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    References listed on IDEAS

    as
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    2. David Tschirley & Thomas Reardon & Michael Dolislager & Jason Snyder, 2015. "The Rise of a Middle Class in East and Southern Africa: Implications for Food System Transformation," Journal of International Development, John Wiley & Sons, Ltd., vol. 27(5), pages 628-646, July.
    3. Thornton Matheson & Patrick Petit, 2021. "Taxing telecommunications in developing countries," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 28(1), pages 248-280, February.
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    More about this item

    Keywords

    Income tax; Poverty; Inequality; Rwanda; Microsimulation;
    All these keywords.

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