Social Impact of a Tax Reform: The Case of Ethiopia
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Summary:
This paper provides an assessment of the poverty and social impact of replacing Ethiopia's sales tax with a value-added tax (VAT). The results indicate that this reform has not had a major adverse effect on the poorest 40 percent of the population. The VAT is progressive in its incidence, and the higher revenues brought about by the VAT can provide additional funds for poverty-reducing spending, including primary education. At the same time, there is significant scope for making education spending more pro-poor by increasing the access of low-income households to schools.
Series:
Working Paper No. 2003/232
Subject:
Education Expenditure Health care spending Revenue administration Tax incidence Tax policy Taxes Value-added tax
English
Publication Date:
November 1, 2003
ISBN/ISSN:
9781451875584/1018-5941
Stock No:
WPIEA2322003
Pages:
39
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