In West Africa, the Value Added Tax (VAT) policy consists of a uniform tax rate, but several items consumed by rich and poor households, are exempted. We provide an optimal tax framework to reflect on the welfare effects of such a tariff structure, in the context of current debates on domestic...

This study evaluates the redistributive and welfare effects of reforms in indirect taxes in Rwanda. Specifically, its aim is to determine the effects of the 2002 reforms of the value added tax (VAT) rate on aggregate household welfare; assessing the impact of this reform on welfare distribution...