Volume 31, Issue 58 (2023)
J Tax Res 2023, 31(58): 48-74 |
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Farajzadeh Z, Nazari M. The Consequences of Agricultural Tax. J Tax Res 2023; 31 (58) :48-74
URL: http://taxjournal.ir/article-1-2297-en.html
URL: http://taxjournal.ir/article-1-2297-en.html
1- , zakariafarajzadeh@gmail.com
Abstract: (1184 Views)
The objective of this study is to examine the effect of imposing agricultural tax on macroeconomic variables, sectoral output and households’ welfare. To get the objective, a Social Accounting Matrix based CGE model was applied. The findings showed that imposing tax rate of 20% on agricultural land and natural resources will increase government tax revenues by more than 5 percent; however it has a negligible effect on other variables. As for value added (output) tax, a 15% tax will result in 15% (more than 20%) increase in government tax revenues while it induces a reduction in GDP by less than 2% (more than 3.2%) as well as prices increase by 3.2% (around 4%). However, 15% value added tax is expected to reduce output in some agricultural activities by more than 10% as well as by less than 3% in no-agricultural sectors. The same pattern of output changes is expected to be realized for output tax scenario. The rural households’ welfare will decrease by more than 4% under land and agricultural natural resources tax of 15% while those of the urban households tend to increase slightly. The corresponding values for 15% value added tax in rural and urban areas are 7-9% and 4-5% welfare reduction, respectively. Imposing this tax rate on agricultural output will lower the rural households’ welfare by 10-12% while the corresponding range for urban households is half of the rural households’ one.
Type of Study: Research |
Subject:
Management
Received: 2023/10/24 | Accepted: 2023/09/1 | Published: 2023/09/1
Received: 2023/10/24 | Accepted: 2023/09/1 | Published: 2023/09/1
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