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An analysis of the distributional impact of excise duty in Uganda using a tax-benefit microsimulation model

Author

Listed:
  • Susan Namirembe Kavuma
  • Christine Byaruhanga
  • Nicholas Musoke
  • Patrick Loke
  • Michael Noble
  • Gemma Wright

Abstract

The distributional analysis of consumption taxes is useful for establishing the welfare impact of tax policy. This paper uses the UGAMOD microsimulation model to establish the tax incidence and welfare impact of excise duty in Uganda. The results reveal that households in the top deciles pay more in excise duty as a percentage of their consumption than households in the bottom deciles. Post-fiscal consumption is almost the same as pre-fiscal consumption for the first seven deciles, but there is a sharp reduction in post-fiscal consumption in the tenth decile.

Suggested Citation

  • Susan Namirembe Kavuma & Christine Byaruhanga & Nicholas Musoke & Patrick Loke & Michael Noble & Gemma Wright, 2020. "An analysis of the distributional impact of excise duty in Uganda using a tax-benefit microsimulation model," WIDER Working Paper Series wp-2020-70, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:wp-2020-70
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    References listed on IDEAS

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    Keywords

    Excise duty; Microsimulation; Poverty; Uganda;
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