Tax-benefit microsimulation modelling in Mozambique : a feasibility study

This paper assesses the feasibility of developing a tax and benefit microsimulation model in Mozambique. Mozambique's National Development Strategy 2015-35 commits to providing social security to three-quarters of poor and vulnerable households by 2035. Tax-benefit microsimulation can be used to explore ways in which this goal could be achieved as well as the distributional impact of implementing more comprehensive social security arrangements. The paper presents an account of Mozambique's tax and benefit arrangements as well as a possible underpinning dataset - the Household Budget Survey (Inquérito ao Orçamento Familiar) - for a tax and benefit microsimulation model.