Maskaeva, AsiyaBochkaeva, ZandaMmasa, JoelMsafiri, MgeniIramba, Eric2020-03-242020-03-242019Maskaeva, A., Bochkaeva, Z., Mmasa, J., Msafiri, M., & Iramba, E. (2019). Microsimulation analysis of the impact of indirect tax benefits on income distribution and poverty alleviation in Tanzania: An application of TAZMOD (No. 2019/16). WIDER Working Paper.https://doi.org/10.35188/UNU-WIDER/2019/650-0http://hdl.handle.net/20.500.12661/2323Full Text Report. Also available at: https://www.econstor.eu/handle/10419/211246This paper analyses the impacts of indirect tax policy reforms on income distribution and poverty in Tanzania by applying a standard static microsimulation model TAZMOD v1.8. The simulations model two indirect tax reforms involving changes to the excise duty and value-added tax rates on alcoholic beverages and tobacco products, and changes to employers’ and employees’ contributions to the National Health Insurance Fund. The results of the first reform find a positive effect on government tax revenue and a neutral effect on income distribution and poverty. The results of the second reform find a positive effect on household income distribution and consumption. The findings show that, despite increasing unequal income distribution, poverty indicators fell.enIncome distributionPovertyTax-benefit reformsMicrosimulationIndirect taxPoverty alleviationIndirect taxTax policyWorking Paper