Estimation of Elasticity and Lag in Companies Tax Revenue ( A case study of Ardebil Province)

hashemmozaffari¹

1) teacher

IOI Code : XYCK-AEFCK
Publication : International Conference on Management and Humanities(icmhconf.com)
Abstract :
    Estimation of Elasticity and Lag in Companies Tax Revenue ( A case study of Ardebil Province) Mozaffari Hashem¹ Abstract One of the concerns of the tax system in the world , is the existence of lag in the levy taxes . As the lag in the case of inflation in terms of the real value will reduce government revenues. According to Tanzi theory, when there is an observable lag in tax collection and levy, inflation rate affects the actual income. In the case, inflation causes the actual tax revenues decrease .Due to the unavoidable lag in the levy taxes in countries, the actual tax revenues decrease is introduced as a major problem in the provision of budget income .Since a significant share of tax revenues is related to tax on revenue of companies, the current research using the annual data from 1373 to 1393 in Ardebil province as a sample from whole country, the length of tax lag in relation to companies tax revenue were investigated and the sensitivity of the tax system to changes in the general price level was evaluated. And also to investigate elasticity and tax lag length, Vector estimation method self-explanatory research model was used. The results showed that the tax lag in the province during the studied period is about 40 months and the price elasticity of tax revenue is 0/68. Therefore, the absence of legal and tax agents and tax payers’ failure leads to dramatically reduce the actual tax revenues.

Keywords : tax lag price elasticity of tax revenue tanzi effect ardebil province