## Tax and Expenditure Policies in Comoros: Distributive Effects Using Micro-Simulations

_Selected Issues Papers, March 4, 2026_

## Source details

**Canonical URL:** [Tax and Expenditure Policies in Comoros: Distributive Effects Using Micro-Simulations](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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## Bibliographic details
- Authors: Al-Mouksit Akim, Jiajia Gu
- Published: March 4, 2026
- Series: Selected Issues Papers
- DOI: https://doi.org/10.5089/9798229040556.018

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### 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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_Source: 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_