What question did this study set out to answer?

The research aims to assess how tax and expenditure policies affect income inequality in Comoros.

March 6, 2026

Tax and Expenditure Policies in Comoros

Key Points

The research aims to assess how tax and expenditure policies affect income inequality in Comoros.
Used a microsimulation framework based on Commitment to Equity methodology
Analyzed household survey data
Evaluated reforms under IMF Extended Credit Facility and post-WTO accession
Proposed reforms increase revenues but have limited impact on reducing inequality
Tax exemptions and fuel subsidies benefit higher-income households disproportionately
Emphasizes the need for improved redistribution mechanisms

Abstract

This paper assesses the distributional impact of tax and expenditure policies in Comoros using a microsimulation framework based on the Commitment to Equity (CEQ) methodology and household survey data. It evaluates key revenue-raising reforms under the IMF Extended Credit Facility and post-WTO accession, including tax base broadening, the removal of tax expenditures, and changes in border taxation. The analysis also examines the incidence of fuel subsidies. Results show that while proposed reforms effectively increase revenues, their impact on inequality is limited. Tax exemptions and fuel subsidies are found to be regressive, disproportionately benefiting higher-income households, highlighting the need for better-targeted redistribution mechanisms.

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Cite This Study

Akim et al. (Sun,) studied this question.

synapsesocial.com/papers/69aa70d6531e4c4a9ff5b041 https://doi.org/https://doi.org/10.5089/9798229040556.018

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