Abstract |
This study confirms the logic of value-added tax (VAT) exemptions for maize. Based on tax efficiency and equity, this commodity dominates all alternatives: it is well targeted and has a measurable positive impact on caloric consumption by deficit households. Other value-added tax exemptions being considered have less to recommend them. In particular, an exemption for meat is not justified, either for equity or nutritional reasons, as it would favor non-poor urban households and negatively affect the caloric consumption of rural households. |