UGAMOD - simulating tax and benefit policies for development in Uganda
UGAMOD, the tax-benefit microsimulation model for Uganda, is a highly versatile yet easy to use tool for policy makers and researchers alike. It allows the user to analyse and compare the effects of different benefit policy scenarios on poverty, inequality, and government revenues. The model applies user-defined tax and benefit policy rules to micro-data on individuals and households and calculates the effects of these rules on household income.
With UGAMOD, users can simulate hypothetical reforms of the tax-and-benefit system. They can estimate, for example, the number of beneficiaries and analyse the characteristics of the prospective recipients of a hypothetical benefit. UGAMOD also allows users to implement hypothetical income tax and social security reforms and calculate their effects on the government budget.
UGAMOD can answer questions such as:
- Are prospective recipients more likely to live in urban or rural areas?
- Do they work in the formal sector or not?
- How much would the proposed policy cost?
- How could tax rates be increased to offset additional expenditures on social protection?
Possible policy reform simulations in UGAMOD include:
- a scaled-up senior citizens grant,
- a universal child benefit,
- a universal old-age pension, and
- a youth unemployment benefit.
UGAMOD has been developed in co-operation with the Uganda Revenue Authority (URA) and Makerere University. UGAMOD is based on the Uganda National Household Survey (UNHS) 2016-17 allowing for representative results on the national and sub-national level. Policies are simulated for 2016, 2017 and 2018 (based on updated household level data from 2016-17).