{
  "title": "Tax and Expenditure Policies in Comoros: Distributive Effects Using Micro-Simulations",
  "publication": "Selected Issues Papers, March 4, 2026",
  "sourceUrl": "https://www.imf.org/en/publications/selected-issues-papers/issues/2026/03/04/tax-and-expenditure-policies-in-comoros-distributive-effects-using-micro-simulations-574458",
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  "summary": "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.",
  "sections": [
    {
      "heading": "Methodology",
      "content": "- Microsimulation framework based on the Commitment to Equity (CEQ) methodology.\n- Uses household survey data to assess distributional impacts.\n- Evaluates reforms under the IMF Extended Credit Facility and post-WTO accession scenarios.\n- Policy instruments analyzed include tax base broadening, removal of tax expenditures, changes in border taxation, and fuel subsidy incidence."
    },
    {
      "heading": "Key findings",
      "content": "- Proposed reforms effectively increase revenues.\n- Impact of the proposed reforms on inequality is limited.\n- Tax exemptions and fuel subsidies are regressive and disproportionately benefit higher-income households.\n- Results highlight the need for better-targeted redistribution mechanisms."
    },
    {
      "heading": "Policy implications and recommendations",
      "content": "- Broaden tax bases and remove tax expenditures to raise revenue, recognizing limited direct effects on inequality.\n- Reassess fuel subsidy policies given their regressive incidence.\n- Design and implement better-targeted redistribution mechanisms to improve equity outcomes alongside revenue reforms.\n\nSource: Selected Issues Papers — \"Tax and Expenditure Policies in Comoros: Distributive Effects Using Micro-Simulations\", Al-Mouksit Akim and Jiajia Gu, March 4, 2026.\n\n---\n\n Content in this bundle\n\n- Sipea2026016\n  - Sipea2026016 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Sipea2026016 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/selected-issues-papers/issues/2026/03/04/tax-and-expenditure-policies-in-comoros-distributive-effects-using-micro-simulations-574458"
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    "Authors: Al-Mouksit Akim, Jiajia Gu",
    "Published: March 4, 2026",
    "Series: Selected Issues Papers",
    "DOI: https://doi.org/10.5089/9798229040556.018",
    "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.",
    "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.",
    "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.",
    "**Sipea2026016**"
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