Tax and Expenditure Policies in Comoros: Distributive Effects Using Micro-Simulations
Selected Issues Papers, March 4, 2026
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- Tax and Expenditure Policies in Comoros: Distributive Effects Using Micro-Simulations
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Bibliographic details
- Authors: Al-Mouksit Akim, Jiajia Gu
- Published: March 4, 2026
- Series: Selected Issues Papers
- DOI: https://doi.org/10.5089/9798229040556.018
Methodology
- Microsimulation framework based on the Commitment to Equity (CEQ) methodology.
- Uses household survey data to assess distributional impacts.
- Evaluates reforms under the IMF Extended Credit Facility and post-WTO accession scenarios.
- Policy instruments analyzed include tax base broadening, removal of tax expenditures, changes in border taxation, and fuel subsidy incidence.
Key findings
- Proposed reforms effectively increase revenues.
- Impact of the proposed reforms on inequality is limited.
- Tax exemptions and fuel subsidies are regressive and disproportionately benefit higher-income households.
- Results highlight the need for better-targeted redistribution mechanisms.
Policy implications and recommendations
- Broaden tax bases and remove tax expenditures to raise revenue, recognizing limited direct effects on inequality.
- Reassess fuel subsidy policies given their regressive incidence.
- Design and implement better-targeted redistribution mechanisms to improve equity outcomes alongside revenue reforms.
Source: Selected Issues Papers — "Tax and Expenditure Policies in Comoros: Distributive Effects Using Micro-Simulations", Al-Mouksit Akim and Jiajia Gu, March 4, 2026.
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- Sipea2026016