Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/211246 
Year of Publication: 
2019
Series/Report no.: 
WIDER Working Paper No. 2019/16
Publisher: 
The United Nations University World Institute for Development Economics Research (UNU-WIDER), Helsinki
Abstract: 
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 alcoholic beverages and tobacco products, and changes to employers' and employees' contributions to the National Health Insurance Fund. The results of the first reform find a positive effect on government tax revenue and a neutral effect on income distribution and poverty. The results of the second reform find a positive effect on household income distribution and consumption. The findings show that, despite increasing unequal income distribution, poverty indicators fell.
Subjects: 
income distribution
poverty
tax-benefit reforms
microsimulation
JEL: 
D31
H25
I38
Persistent Identifier of the first edition: 
ISBN: 
978-92-9256-650-0
Document Type: 
Working Paper

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