The purpose of this study is to assess the feasibility of building a microsimulation
model of the Ethiopian tax and benefits system. We first provide a detailed description of the tax
and benefits system of the country. This includes qualifying criteria, tax brackets, and
exemptions. We then describe household survey datasets available in the country and examine
the nature of these datasets in terms of representativeness, completeness, and panel data
structure. Finally, we provide assessments for whether each tax and benefits system can be
microsimulated given the rules and the nature of the data available.