Gender and Tax Incidence of Rural Land Use Fee and Agricultural Income Tax in Ethiopia

Hitomi Komatsu, Alemayehu Ambel, Gayatri B. Koolwal and Manex Bule Yonis

No 9715, Policy Research Working Paper Series from The World Bank

Abstract: The rural land use fee and agricultural income tax are major payments for rural landholders in Ethiopia. This paper examines the gender implications of these taxes using tax payment and individual land ownership data from the Ethiopian Socioeconomic Survey 2018/2019. It finds that the rural land use fee and agricultural income tax, which are assessed on the area of landholdings, are regressive. Female-headed- and female adult-only households bear a larger tax burden than male-headed and dual-adult households. Norms limiting women’s role in agriculture and gender agricultural productivity gaps are likely to result in lower consumption and accordingly, a higher tax burden for female-headed households than for male-headed households. Reducing the tax rates for smallholders can diminish the gender difference in tax burdens, but the tax continues to be regressive. This highlights the difficulty of area-based land taxes to be vertically equitable.

Keywords: Gender and Development; Taxation&Subsidies; Gender and Economics; Gender and Poverty; Economics and Gender; Gender and Economic Policy; Macro-Fiscal Policy; Public Sector Economics; Economic Adjustment and Lending; Public Finance Decentralization and Poverty Reduction; Food Security (search for similar items in EconPapers)
Date: 2021-06-24
New Economics Papers: this item is included in nep-agr
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Citations: View citations in EconPapers (1)

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Related works:
Working Paper: Gender and Tax Incidence of Rural Land Use Fee and Agricultural Income Tax in Ethiopia (2021)
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Persistent link: https://EconPapers.repec.org/RePEc:wbk:wbrwps:9715

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