Food Products

Poor households spend relatively more on tax-exempt food products than richer households. Household expenses on tax-exempt food products amount on average to DF 153,629 per household, which is equivalent to 12.4% of total household spending. Table 9.8 shows household expenses on tax-exempt food products, and Table 9.9 shows the proportion of annual household spending. Of these basic food items, sugar is the most consumed item in terms of expenditure (DF 37,622). Although rice consumption is higher, only a tiny fraction of rice is actually tax exempt and therefore has been excluded from our analysis. Tax-exempt products are relatively more important for the poor, as the expenditure share of these products is

Table 9.8 Expenditures per Household (in DF), by quintile

Quintile

Powdered milk

Flour

Cooking oil

Sugar

Total

1 (poorest)

4250

17,455

8262

22,193

52,161

2

17,189

27,000

17,573

36,717

98,480

3

26,579

25,541

20,486

40,253

112,858

4

35,266

28,348

23,782

41,760

129,156

5 (richest)

55,248

31,814

33,213

45,082

165,357

Total

29,529

26,350

21,450

37,622

114,951

Table 9.9 Expenditure on subsidized products over total expenditures (in %), by quintile

Quintile

Powdered milk

Flour

Cooking oil

Sugar

Total

1 (poorest)

1.57

6.46

3.06

8.22

19.31

2

2.47

3.88

2.52

5.27

14.14

3

2.69

2.59

2.08

4.08

11.43

4

2.66

2.14

1.80

3.15

9.75

5 (richest)

2.24

1.29

1.35

1.83

6.71

Total

2.39

2.13

1.74

3.04

9.30

Source World Bank calculation based on the EDAM 3. Note EDAM Enquete Djiboutienne aupres des menages

much higher for the very poor than for the very rich. In the poorest households, 19% of the total expenses correspond to tax-exempt food products, while these products account for less than 7% of the richest households’ total expenses.

 
Source
< Prev   CONTENTS   Source   Next >