WIDER Seminar Series

Vincent Leyaro on distributional impacts of lowering the value-added tax rate for standard rated items in Tanzania

WIDER Seminar Series

Vincent Leyaro gave a presentation on 20 May 2020, as part of the Sustainable development solutions for Tanzania – strengthening research to achieve SDGs project. The presentation was held as a webinar.

Abstract - Assessing the distributional impact of lowering the value-added tax rate for standard rated items in Tanzania and options for recouping revenue losses

This paper explores the distributional impact of lowering the value-added tax rate for standard rated items in Tanzania Mainland. Using a static tax-benefit microsimulation model – TAZMOD – which is underpinned by data derived from the Household Budget Survey 2017/18, reductions in VAT from 18 percent to 17 percent and 16 percent are simulated. The revenue losses and impact on poverty are estimated. The rules for direct taxes are then modified in order to identify ways in which the revenue loss caused by the lowering of the standard rate of VAT can be recouped.

About the speaker

Dr Vincent Leyaro is currently a Senior Lecturer in the Department of Economics of the University of Dar es Salaam in Tanzania. He was previously an Associate Economics Affairs Officer at the United Nations Economic Commission for Africa (UNECA) in Addis Abba, Ethiopia. Dr Leyaro is also an External Research Fellow at the Centre for Research in Economic Development and International Trade (CREDIT) at the University of Nottingham, UK. He completed a PhD in Economics from the University of Nottingham in UK in 2010.  

Dr Leyaro maintains primary research interests in the areas of trade, trade policy reforms and regional integration; labour markets analysis; household survey analysis with focus on poverty and inequality; political economy with focus on state effectiveness and social protection.