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

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.

Details

  • Author

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

  • Document Date

    2021/06/24

  • Document Type

    Policy Research Working Paper

  • Report Number

    WPS9715

  • Volume No

    1

  • Total Volume(s)

    1

  • Country

    Ethiopia,

  • Region

    Africa East,

  • Disclosure Date

    2021/06/24

  • Disclosure Status

    Disclosed

  • Doc Name

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

  • Keywords

    tax incidence; female-headed household; land area; rural land use; agricultural income tax; development research group; Federal Democratic Republic of Ethiopia; tax schedule; tax liability; Gender and Land Rights; self-report measure; tax burden; Property tax; household and individual; tax payment; test of equality; tax rate; total tax; gender difference; per capita expenditure; single female; household expenditure; household head; adult female; national tax journal; Certificate of Ownership; access to land; total tax liability; high tax burden; horizontal equity; individual tax; household sample; adult equivalence scale; impact of land; personal income tax; fiscal incidence analysis; tax incidence analysis; land area data; poor rural household; rights to land; value of land; local public service; agricultural land area; heavy tax burden; land use policy; linear probability model; changes in ownership; tax on land; low consumption; property tax burden; incidence of poverty; site value taxation; local revenue collection; breeding of livestock; gaps in productivity; employment of individuals; duration of absence; local government revenue; ownership of land; agricultural extension service; domestic resource mobilization; high value crops; average tax rate; income tax liability; Poverty & Inequality; status of woman; ownership of asset; adult equivalent consumption; increase poverty; property tax incidence; urban property tax; total tax revenue; principles of taxation; per capita income; land use right; general equilibrium framework; property tax rate; tax on capital; property tax reform; urban real property; married male; small sample; Land Registry; land size; male adult; gender inequity; Land Ownership; marital status; gender bias; agricultural activity; agricultural productivity; tenure insecurity; farm area; female respondent; Land Registration; vertical equity; development study; behavioral response; female adult; household size; gender implication; gender norm; agricultural economics; gender equity; customary ownership; tax system; property owner; purchase agreement; tenure security; crop farm; Political Economy; Tax Compliance; gender perspective; household composition; survey data; land market; Gender Gap; regional tax; poor household; use rights; tax policy; base tax; rural landholders; subsistence farming; equal right; expenditure expenditure; summing up; fixed supply; farming household; certification process; property right; land rental; landholding class; property value; security concern; Calculate Taxes; graphic representation; gender dimension; Estimate Taxes; tax collector; landholding size; capital owner; Learning and Innovation Credit; excise tax; Gender Equality; urban household; satellite imagery; welfare measure; nonfood item; agricultural work; productivity gap; family size; tax assessment

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Citation

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

Gender and Tax Incidence of Rural Land Use Fee and Agricultural Income Tax in Ethiopia (English). Policy Research working paper,no. WPS 9715 Washington, D.C. : World Bank Group. http://documents.worldbank.org/curated/en/121581624568792085/Gender-and-Tax-Incidence-of-Rural-Land-Use-Fee-and-Agricultural-Income-Tax-in-Ethiopia