Estimating the Tax Capacity of Provinces in the Country

Subject Areas : Applied Economics

احمد سرلک ¹ ( ندارد )

Received: 2011-08-16 Accepted : 2011-12-13 Published : 2011-06-22

Keywords: Tax Capacity, Panel data, Direct taxes, In direct taxes,

Abstract :

The present article tries to estimate the tax capacity of provinces in the Country between 1380-1387 through the application of panel data. The results indicate that the tax capacity of the provinces are not utilized completely. Despite the fact that the ratio of the income to tax capacity is smoothly increasing in some provinces of  the country,but in sum the said ratio has a astable trend for all the provinces in general, whose fluctuations are very limited. The limitation of the range of these fluctuations is mostly due to the fact that a higher portion of present tax capacity of provinces in the country is not being used.The gap existing between the tax capacity and collected taxes is mostly observed in direct taxes, especially in the services sector. Estimations also indicate that there is no concerted effort to collect direct  taxes  in the provinces of the country. The gap among indirect taxes is less observable and in all provinces of the country except for the provinces of Tehran and Isfahan, a very low percentage of indirect tax capacity is being utilized.