Impact of excise tax on the South African economy: A dynamic CGE approach

Abstract

Aim/purpose – This paper analyses the impact of excise tax on the South African economy by means of a Dynamic Computable General Equilibrium (CGE) model. We utilised a policy simulation to evaluate the effects of an excise tax, with the results indicating that the rise in excise tax should not impinge on lower revenue households, as long as the greater government revenue flows to those households.

Keywords

• excise tax
• dynamic computable general equilibrium model
• south africa
• c68
• h71