Studying and investigating the role of taxes in reducing inflation

Zahra Ahmadzadeh Delkhosh¹

1) Masters in Economics, Economic Systems Planning, Payam Noor University, Karaj Branch, Alborz Province, Iran,

Publication : International Conference on International Trading, Economic Studies & Human Sciences (hestconf.com)
Abstract :
A tax is a compulsory financial charge or some other type of levy imposed on a taxpayer (an individual or legal entity) by a governmental organization in order to collectively fund government spending, public expenditures, or as a way to regulate and reduce negative externalities. The legal definition and the economic definition of tax differ in some ways, so that economists do not count any monetary transfers to the government as taxes. Therefore, some transfers to the public sector are similar to paying prices. A tax is a compulsory financial cost or a type of tribute that is imposed by a government organization on the taxpayer (a natural person or a legal entity) in order to finance various public expenses or government expenses. Failure to pay, evasion or resistance to tax payment can result in punishment according to the law. There are different types of taxes and they are divided into two general categories: direct taxes and indirect taxes. Income tax collected from natural and legal persons is considered as direct taxes. During the last few decades, the value added tax system has been implemented in more than half of the countries in the world. This tax, which is collected from the added value of companies in different stages of production and distribution, has many benefits such as low tax rates, reducing incentives. Tax evasion is neutral to economic variables and is a reliable source of income for the government. Countries that have not yet followed this tax system or those that are late in implementing it, have had concerns that the increase in the general level of prices after the implementation of value added tax and its inflationary effects are of this category. Considering that not much time has passed since the implementation of the law on the targeting of subsidies, it is necessary to examine the effects of this economic development on the country s economy. Value added tax is a type of consumption tax that is collected at different stages of the chain of import, production, distribution and consumption by economic enterprises in the amount of a percentage of the added value obtained at each stage of the chain and is transferred from each enterprise to the next enterprise until finally transferred to final consumers and paid by them.
Keywords : economic growth gross national product economy tax economic development.