Economic analysis supporting agricultural tax reform

  • Agriculture
  • Fiscal policy

The question in front of government was whether exempting agricultural inputs from import tax would return more in productivity than it cost in revenue. The argument had been made in principle but never quantified.

We led the economic impact assessment, applying cost-benefit and econometric modelling to import-tax exemptions on mechanisation, irrigation technologies, and livestock feed. The analysis set out the effects on smallholder farmers, agribusinesses, government revenue, and sector productivity.

That evidence informed a national tax policy reform covering mechanisation, irrigation, and feed items.

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