{
  "title": "Macro-Distributional Implications of VAT Reform Supporting Public Investment in Cabo Verde",
  "publication": "Selected Issues Papers, March 10, 2026",
  "sourceUrl": "https://www.imf.org/en/publications/selected-issues-papers/issues/2026/03/10/macro-distributional-implications-of-vat-reform-supporting-public-investment-in-cabo-verde-574558",
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  "summary": "This paper assesses the macroeconomic and distributional effects of VAT reform to finance public investment in Cabo Verde. The analysis shows that VAT reform can strengthen fiscal space and support growth, but may be regressive without accompanying measures.",
  "sections": [
    {
      "heading": "Overview and authorship",
      "content": "- Title: Macro-Distributional Implications of VAT Reform Supporting Public Investment in Cabo Verde\n- Authors: Daniel Cunha, Dawit Tessema, Peter C Wankuru\n- Publication date: March 10, 2026\n- Series: Selected Issues Paper No. 2026/020\n- Volume: 2026\n- Issue: 020\n- Pages: 29"
    },
    {
      "heading": "Core findings",
      "content": "- VAT reform can strengthen fiscal space.\n- VAT reform can support growth.\n- VAT reform may be regressive without accompanying measures.\n- Targeted transfers can offset distributional impacts, supporting inclusive and sustainable growth."
    },
    {
      "heading": "Analytical focus and subjects",
      "content": "- Consumption, Expenditure, Income, National accounts\n- Public investment spending\n- Taxes, Value added tax\n- Econometric models and scenario comparison (including an upside scenario)\n- Monetary aspects referenced: Central bank policy rate, Interest rate policy, Long term interest rates, Monetary transmission mechanism"
    },
    {
      "heading": "Keywords and thematic elements",
      "content": "- Cabo Verde\n- Value-added tax; VAT reform\n- Public investment spending\n- Income; Consumption\n- IMF country; IMF staff"
    },
    {
      "heading": "Publication identifiers and access",
      "content": "- DOI: https://doi.org/10.5089/9798229041850.018\n- Stock No: SIPEA2026020\n- ISBN: 9798229041850\n- ISSN: 2958-7875\n\nSource: Macro-Distributional Implications of VAT Reform Supporting Public Investment in Cabo Verde, Selected Issues Papers, March 10, 2026.\n\n---\n\n Content in this bundle\n\n- Sipea2026020\n  - Sipea2026020 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Sipea2026020 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/selected-issues-papers/issues/2026/03/10/macro-distributional-implications-of-vat-reform-supporting-public-investment-in-cabo-verde-574558"
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    "Authors: Daniel Cunha, Dawit Tessema, Peter C Wankuru",
    "Published: March 10, 2026",
    "Series: Selected Issues Papers",
    "DOI: https://doi.org/10.5089/9798229041850.018",
    "Title: Macro-Distributional Implications of VAT Reform Supporting Public Investment in Cabo Verde",
    "Authors: Daniel Cunha, Dawit Tessema, Peter C Wankuru",
    "Publication date: March 10, 2026",
    "Series: Selected Issues Paper No. 2026/020",
    "Volume: 2026",
    "Issue: 020",
    "Pages: 29",
    "VAT reform can strengthen fiscal space.",
    "VAT reform can support growth.",
    "VAT reform may be regressive without accompanying measures.",
    "Targeted transfers can offset distributional impacts, supporting inclusive and sustainable growth.",
    "Consumption, Expenditure, Income, National accounts",
    "Public investment spending",
    "Taxes, Value added tax",
    "Econometric models and scenario comparison (including an upside scenario)",
    "Monetary aspects referenced: Central bank policy rate, Interest rate policy, Long term interest rates, Monetary transmission mechanism",
    "Cabo Verde",
    "Value-added tax; VAT reform",
    "Public investment spending",
    "Income; Consumption",
    "IMF country; IMF staff",
    "DOI: https://doi.org/10.5089/9798229041850.018",
    "Stock No: SIPEA2026020",
    "ISBN: 9798229041850",
    "ISSN: 2958-7875",
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