Economic factors affecting the components of Iran tax revenue in the context of economic sanctions

Document Type : Scientific paper

Authors

1 PhD student in Economics - Islamic Azad University- South Tehran Branch- Tehran- Iran

2 Assistant Professor- Islamic Azad University- South Tehran Branch- Tehran-Iran

Abstract

In the present study, the economic factors affecting the components of Iran tax revenue in the context of economic sanctions are investigated using the exploratory factor analysis model and the NARDL nonlinear model during the period 1979-2017. To examine tax revenues, personal income tax, corporate income tax and customs income tax were used in the form of three models. According to the results of the exploratory factor analysis model, the first 4 study variables represent sanctions and among the indicators, the price of imported goods and the price of exported goods have the most effect on these factors. In accordance with the estimation results of the NARDL nonlinear model, in the long run, the variables of oil revenue share and sanctions have a significant positive effect on personal tax revenues. Moreover, GDP per capita variable has a significant negative impact on corporate tax revenues in the long run. Finally, in the long run, the effect of variables on customs revenue is theoretically consistent but not statistically significant. Considering the economic conditions of the country at the time of the sanctions, coherent changes are required in the structure and system of the taxes.

Keywords

References

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Macroeconomics Research Letter
Volume 15, Issue 30
January 2021
Pages 193-209

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History

  • Receive Date: 06 November 2020
  • Revise Date: 02 February 2021
  • Accept Date: 05 May 2021

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