VAT Reform and Its Macro-Distributional Impact on Public Investment in Cabo Verde

• The paper analyzes the macroeconomic and distributional effects of VAT reform to finance public investment in Cabo Verde.
• VAT reform can increase fiscal space and support economic growth.
• Without compensatory measures, VAT reform may have regressive effects, disproportionately impacting lower-income groups.
• Targeted transfers are recommended to offset negative distributional impacts and promote inclusive, sustainable growth.

Source: imf.org

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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