Tax and benefit micro-simulation modeling in Tanzania

UNU-WIDER, the Department of Economics of the University of Dar es Salaam and Southern African Social Policy Research Insights (SASPRI) is co-organizing a workshop on tax and benefit micro-simulation modeling in Tanzania on 28 July 2016, in Dar es Salaam.

While in developed countries micro-simulation models are in everyday use for analysing a country’s tax and benefit policies, in developing countries, particularly those found in sub-Saharan Africa, they are rarely used. Having access to such models in developing countries is of key importance to researchers and policy makers alike, they are necessary to acquire an overall view of the current extent of transfer systems, their fiscal costs, and gaps in the protection they provide.

Building an own model for Tanzania

At the workshop, participants will brainstorm on the potentials for Tanzania as it embarks on building its own model – TAZMOD. Similar models based on the European EUROMOD have already been developed by SASPRI in South Africa (SAMOD) and Namibia (NAMOD), and are being developed in Zambia, Mozambique and further afield.

TAZMOD represents an important step towards implementing the government’s main objective of inclusive and sustainable economic growth that will lead to poverty reduction and lower income inequality. The workshop is part of the SOUTHMOD project in which tax-benefit microsimulation models are developed for selected low-income countries.