Evaluation of the Increased Share of Tax Revenues from Government Revenues Using the Approach of Oil Dependency Reduction

Document Type : Original Article

Author

• Seyedeh Zahra Mousavi

Ma in accounting,Department of accounting,Islamic azad university Islamshahr branch,tehran ,iran

10.22067/ijaaf.2021.40240

Abstract

This quantitative research was conducted with a positivist paradigm to evaluate the methods that could increase tax revenues from government revenues using oil dependency reduction. The researcher used the annual data of Iran during 1978-2019 to analyze the research model. In addition, a generalized torque technique was applied in the EViews software to estimate the model. According to the results, the variable of oil revenues had the most significant effect on the government revenues, followed by the revenue of sales and consumption tax and value-added tax (VAT), indicating that the government could easily reduce oil revenues by efficient policies and replace this source of income with the revenue from sales and consumption tax and VAT. On the other hand, the revenue from wealth tax had the least significant impact on the government revenues, which was possibly caused by the inefficiency of reception methods or the inability to be identified. Further assessment in this regard could help governments identify extremely more appropriate revenue resources to extract less oil and control social inequity. An important issue observed in this study was the reverse coefficient of the revenue from corporate tax. Most of these companies may be manufacturing and industrial units, and given the pressure of economic and political issues and inflation on the country, they have mostly reacted to enormous taxes, had tax evasion, or reduced their production level, which has, in turn, increased the rate of unemployment and decreased the national gross domestic product, thereby reducing the government revenues.

Keywords

• Income Tax
• Consumption and Value-added Tax
• Wealth Tax
• Oil Revenues
• Generalized Torque

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