Ali Akbar Arabmazar; Hojjat Izadkhasti; Sarah Yavari
Abstract
Value-added tax is levied at various stages of the import, production, distribution, and consumption chain based on a percentage of the value of goods sold or services provided at each stage and ultimately paid by the final consumer. Structural transformation is considered as one of the variables ...
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Value-added tax is levied at various stages of the import, production, distribution, and consumption chain based on a percentage of the value of goods sold or services provided at each stage and ultimately paid by the final consumer. Structural transformation is considered as one of the variables affecting the efficiency of VAT collection often has led to an increase in the share of services in the total value added of the economy. In this study, the effect of structural transformation on the efficiency of VAT collection in provinces of Iran during 2008-2016. The results indicate that the ratio of value added of the service sector to total value added has a negative and significant effect on the efficiency of VAT collection. The value-added ratio of the services sector to the value added of the industrial sector has a negative and significant effect on the efficiency of VAT collection. Also, GDP growth per capita, Gini coefficient and the interval of value-added ratio of the agricultural sector of total value added has a negative effect on the efficiency of VAT collection. The rate of urbanization and the ratio of construction expenditures to total government expenditures have a positive and significant effect on the efficiency of VAT collection in the provinces.
Mohammad Ghasem Rezaee; Mahboubeh Sabzrou; Mohammad Rezaee-Pour
Volume 13, Issue 51 , January 2014, , Pages 163-187
Abstract
In this paper, we focus on two major questions about tax incentives: 1) Do the countries compete over tax incentives in a same way as they compete over tax rates? ; 2) Do the offered tax incentives results in attracting investment and increasing economic growth? The results of testing the first question, ...
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In this paper, we focus on two major questions about tax incentives: 1) Do the countries compete over tax incentives in a same way as they compete over tax rates? ; 2) Do the offered tax incentives results in attracting investment and increasing economic growth? The results of testing the first question, in which spatial econometric technique for panel data and Maximum Likelihood Estimation (MLE) Method were used, indicate that the developing countries compete over tax rates and tax holidays (and don’t compete over investment rebates); In other words, governments consider other states’ tax policies as a benchmark for judging their own tax policies. The results of testing the second question, in which econometric techniques of dynamic data and Generalized Moments Method (GMM) were used, indicate that tax rates and tax holidays influence foreign direct investment while investment rebates don’t have such an effect and only tax rates have significant relationship with private sector investment and economic growth. Tax incentives which were tested here include tax rates reduction, tax holiday and investment rebates and empirical evidence is based on time period 1985- 2008 and the data for 45 developing countries.
