The aim of this project is to extend ZEW-EviSTA by integrating the latest EVS wave 2018 (Income and Consumption Survey). While income tax-related variables are recorded in the SOEP, information on consumption expenditure is missing. A new EVS module enables simulations of this important part of the tax system. This proposal has two major advantages. Firstly, the detailed data on consumption expenditure enables the modelling of indirect taxes such as VAT or consumption taxes in our microsimulation model. Second, given the growing relevance of climate change, carbon and energy taxes in general are becoming an increasingly important aspect of the tax system. With national emissions trading (“Nationaler Emissionshandel”), a new mechanism for CO2 pricing was introduced in Germany in 2021. In order to advise policy makers, it is important to understand the distributional impacts of such taxes on subgroups of the population as well as the budgetary impacts of different reform proposals. The simulation of potential tax and transfer measures in ZEW-EviSTA enables an evaluation of possible compensation mechanisms.