Integration of indirect taxation to GHAMOD
This note, with emphasis on VAT and excise taxes, illustrates how indirect taxes are modelled in the context of GHAMOD, a tax-benefit microsimulation model for Ghana.
GHAMOD is similar to the EUROMOD base platform, and its built-in Statistics Presenter Tool supports simple analyses of ex-ante policy (reform) on distributional outcomes. GHAMOD has been developed in the context of the SOUTHMOD project, under which various tax-benefit microsimulation models have been elaborated and maintained for selected developing countries.
The indirect tax incorporation approach discussed for GHAMOD is a template for future models and will be reflected in existing country models under the SOUTHMOD umbrella. The models are available free of charge for non-commercial research purposes by researchers, government officials, policy-makers, and the interested public.