**Table 9. Tax Incidence, by Land Area Held**

||**Pan**<br>Household t|**el 1**<br>ax incidence||**Pane**<br>Imputed indivi<br>incide|**l 2**<br>dual-level tax<br>nce||
|---|---|---|---|---|---|---|
|Total land area<br>(ha)|Male-headed|Female-<br>headed|Total land area<br>(ha)|Male holders|Female<br>holders||
|<0.5|**0.32**|**0.54**|<0.5|**0.87**|**0.98**||
|0.5-0.99|**0.48**|**0.81**|0.5-0.99|**1.30**|**1.55**||
|1-1.99|0.56|0.57<sup>d</sup>|1-1.99|2.18|1.89||
|>2|0.65|na<sup>b</sup>|>2|na<sup>b</sup>|na<sup>b</sup>||
|_Number of_|||_Number of_||||
|_households_|_1,711_|_550_|_respondents_|_1,726_|_1,731_||
||**Pane**|**l 3**<sup>**a**</sup>||**Panel**|**4**<sup>**b**</sup>||
||Household t|ax incidence||Household ta|x incidence||
|Total land area<br>(ha)|Dual-adult|Female-only|Total land area<br>(ha)|Married<br>male-headed|Married<br>female-<br>headed|Single<br>female-<br>headed|
|<0.5|**0.36**|**0.53**|<0.5|**0.32**|0.54<sup>d</sup>|**0.54**|
|0.5-0.99|0.49|na<sup>c</sup>|0.5-0.99|**0.47**|na<sup>c</sup>|**0.87**<sup>**d**</sup>|
|1-1.99|0.55|na<sup>c</sup>|1-1.99|0.55|na<sup>c</sup>|0.61<sup>d</sup>|
|>2|0.66|na<sup>c</sup>|>2|0.63|na<sup>c</sup>|na<sup>c</sup>|
|_Number of_<br>_households_|_1,891_|_301_|_Number of_<br>_households_|_1,604_|_151_|_398_|

_Notes_ : The sample is restricted to landholding households and respondents. For panels 1, 3, and 4 household tax incidence is calculated by dividing self-reported tax payments by household expenditure. In panel 2, individual tax incidence is calculated by dividing imputed tax payments (apportioned according to individual landholdings) by per capita expenditure. Households and individuals are ranked by the area of landholdings. Tests of equality of means were conducted between (1) male- and female-headed households, between (2) male and female landholders, (3) female-only and dual adult households, and (4) married male-headed and single female-headed households. Significant differences at p<0.05 are reflected in bold. a Male adult only households are excluded in this panel because of small sample size. b Single male-headed households are excluded in this panel because of small sample size.<sup>c</sup> The sample size is below 100 observations.<sup>d</sup> The sample size is below 50 observations. Household sampling weights are used.

# **b) Tax Incidence Using the Amhara, Oromia, and SNNP Tax Schedules**

In this section, we calculate tax incidence using imputed tax liabilities with land area and the tax schedules of Amhara, Oromia, and SNNP regions (Table 10) due to the large difference between self-reported tax payments and imputed tax liabilities found in section 4.3. The assumption is that there is full tax compliance. Our results show that tax incidence using imputed tax liabilities with land size and tax schedules is about a third of the size of tax incidence using self-reported taxes. Some patterns of the tax burden still hold, however. On vertical equity, taxes are regressive. As for horizontal equity, female-headed and female-only households still bear a larger burden than male-oriented households. Tax incidence of female-only and single female-headed households is 42 percent larger than that of dual-adult and married male-headed households—similar to the difference using self-reported taxes. For individuals, the gender difference in tax incidence is no longer significant.

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