Fiscal policy changes can significantly affect poverty and income inequality. Incidence analysis of taxation and expenditures on different population segments allows governments to assess the impact of current policies and evaluate policy options.

Fiscal incidence analysis can support changes in fiscal policy. This report presents policy simulations that consider the revenue and distributional impacts of possible changes in the design of expenditure programs or instruments for revenue collection in Timor-Leste. The methodology, analysis, and results presented in this report will be beneficial to stakeholders in Timor-Leste and offer important insights for other countries in Asia and the Pacific.