This paper analyses the impacts of indirect tax policy reforms on income distribution and poverty in Tanzania by applying a standard static microsimulation model TAZMOD v1.8. The simulations model two indirect tax reforms involving changes to the excise duty and value-added tax rates on...

There is a widespread perception that taxing in sub-Saharan Africa has been and remains fraught with problems or government failure. This is not generally true. For more than a century, colonial administrations and independent states have steadily developed the capacity to routinely collect more...

This paper explores the distributional impact of lowering the value-added tax rate for standard-rated items in Tanzania Mainland. Using a static tax-benefit microsimulation model- TAZMOD-which is underpinned by data derived from the Household Budget Survey 2017/18, reductions in value-added...

Assessing tax gaps-the difference between the potential and actual taxes raised-plays a vital role in achieving positive domestic revenue objectives through improved and reformed taxation. This is particularly pertinent for growth outcomes in developing countries. This study uses a bottom-up...

This paper assesses the feasibility of developing a tax and benefit microsimulation model in Rwanda. Tax-benefit microsimulation can be used to explore ways in which national development goals can be achieved in a cost-effective manner, and to assess the distributional effects of more...

Changes in the tax structure and category of taxes clearly matter when it comes to initiating tax policies. This paper employs data from a sample of 33 transitional countries over the period 1991-2014. It finds that, in a particular transitional country, the higher the national income, the...

In several low- and middle-income countries with important extractive sectors, gross national income has developed favourably. Africa has benefitted most, particularly West Africa. This survey provides an up-to-date statistical analysis of the contribution of non-fuel minerals mining to low- and...

The problem of debt bias can be tackled through either disincentivizing the use of debt financing or incentivizing the use of equity financing. Considering the South African context - in which many firms are highly leveraged and the marginal effective tax rates for using debt financing are...

This study provides a first attempt to contribute a large-scale assessment of whether crisis response as observed during the COVID-19 pandemic can serve as a feasible blueprint for creating durable solutions across countries. Adopting a lens on fiscal contracts, it assesses highlevel parameters...

The COVID-19 pandemic showed that many developing countries could not respond effectively to crises due to their limited capacity to diversify their social protection responses. Social protection systems depend mainly on government tax revenue capacity. Raising domestic revenue still represents...