Cost–Benefit Analysis of Value-Added Tax Exemption for Soap in Madagascar

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This study assesses the cost-effectiveness and costs/benefits of removing VAT on soap in Madagascar focusing on the cost implications, health impact, and value for money of three intervention scenarios involving an elimination of, or a reduction in, the VAT applied to soap. Since the cost of soap is reported to be an important obstacle to practicing handwashing, a value-added tax (VAT) exemption for soap may be a viable policy option to reduce the price of soap and to make it more affordable for households.