Journal of Tax Research

  The national revenue of each country is the most important indicators of the economy affected by several factors, one of which is investment. The main governments’ policies are to study investment and factors affecting it in order to increase the national revenue. Among the factors influencing investment that can be controlled by the government is taxes. In fact, the government can control the effective tax rates on investment. By using pool model, the present research indicates that there is a significantly negative relationship between taxes and investment in three regions during the period of 14 years (From 1373 till 1386) constantly. But secondly by highlighting two periods before and after the reforms, it was observed that there is a negative relationship in both industrialized and less developed industrial area, but in backward industrial area both in 2 time periods, there is insignificant relationship continuously. It has been suggested that non-tax incentives will be used in backward industrial area and also proportionate to the provinces’ situations, strategies and policies will be used.