Defining a Tariff change

Tariff change definition is the third mandatory element in any scenario.

SMART offers several types of tariff changes, but all tariffs will be affected the same way within a scenario (one tariff change for all affected products).

After clicking on Add/M

To specify a tariff change:

1. Select the desired type of tariff changes (see Types of tariff changes);
2. Enter required parameters if any;
4. Click the Proceed button.

Types of Tariff Changes

Select a type of tariff change by clicking the corresponding radio button and entering required parameters if any. SMART proposes the following types of tariff changes to modify tariffs of the affected products and selected beneficiaries:

Tariff Change		Definition and Parameters
New Rate		Tariffs are replaced with the entered value;
Maximum Rate		Tariffs above the entered maximum rate are replaced with that value;
Linear Cut		Tariffs are reduced by the entered cut coefficient. For example a 80% linear cut will modify existing tariffs with r1=0.2*r0 (with r0 as the existing tariff and r1 as the new tariff)
Swiss Formula		Tariffs will be reduced according to the so-called Swiss formula which is defined as r1=(a*r0)/(a+r0) with a as coefficient to be entered in the parameter box. a=16 by default. Or you can enter the Goal For Cut in Average Tariff and the system will calculate a for you.

With all the selections done you can either save the Query by pressing on Save button or save and submit the query by pressing Save and Submit button.

Next: Results

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The World Bank, 2010