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.
